NYSE ARCA’s application for a Spot Cardano Exchange-Traded Fund is recognized by the United States Securities and Exchange Commission.
According to February 24 notification Of the supervisor, it formally recognized the proposal to mention and trades shares of the Grayscale Cardano Trust under NYSE Arca Rule 8.201-e. This starts the assessment process, whereby the SEC will ultimately decide whether the ETF approves or reject.
From now on a 240-day assessment window starts as soon as the application is published in the Federal Register, which usually happens within a few days of the SEC recognition.
NYSE ARCA initially submitted the proposal via a 19B-4 form earlier this month, so that the 60th Crypto ETF application has been marked so far this year. The submission serves as a formal request for a change of rule, after which it must protect an S-1 registration statement before it can start acting.
If approved, the Grayscale Cardano Trust provides investors to Cardano (ADA) without having to hold the asset directly. Instead, investors would buy shares of the trust, with the price linked to an index tracking of ADA value in large fairs such as Coinbase, Kraken, Craken.com and Bitfinex.
It is interesting that, despite the fact that Bitfinex had no American licenses, it was still included in the index because it met the liquidity requirements.
Coinbase Custody Trust Company would handle the assets of the fund, while BNY Mellon would serve as the transfer agent and manager.
Ada did not respond to the latest development and fell by more than 8% when writing. When Grayscale, on the other hand, submitted the 19B-4, the Altcoin shot 11%.
In the meantime, the chance that the SEC approves a Cardano -ETF in 2025 in the past day with more than 10% on Polymarket, which currently reflects a 65% chance of approval.
With crypto-friendly leadership within the SEC, the industry is hopeful that the committee would be more open to the approval of digital investment products for assets.
This recognition of Grayscale’s Cardano ETF invention is only the last in a series of comparable movements of the SEC in recent weeks. In February alone, the Commission formally recognized several crypto ETF archives about different assets.
Only a few days earlier, the SEC acidified a 19B-4 application of 21Shares via the CBOE BZX exchange, with the aim of making it possible to set ETF out of its ETF. If approved, this would mark the first instance of an Ethereum ETF offer that offers rewards to American investors.
Files for Litecoin (LTC) and XRP spot ETFs from Coinshares were also officially recognized, in addition to the proposal from Grayscale for a place XRP and Dogecoin ETF.
Grayscale also revised the application for a Solana (SOL) Spot ETF, which was recognized by the SEC on 6 February.
