Key Takeaways
NYSE Arca has submitted a proposal to the US SEC to list the Grayscale Cardano ETF, which will be traded under the ticker symbol GADA. The purpose of this ETF is to provide investors with exposure to ADA through traditional stock market channels.
The filing by NYSE Arca involves a rule change to allow the listing and trading of shares of the Grayscale Cardano Trust. These shares will be traded under the ticker symbol “GADA”. The trust, sponsored by Grayscale Operating, LLC and Grayscale Investments Sponsors, LLC, will directly hold ADA, with each share representing a proportional ownership of the underlying assets.
The pricing of the shares will be based on the value of ADA as measured by the CoinDesk Cardano Price Index (ADX). The trust aims to offer a simplified investment option for those who find it challenging to directly custody crypto, allowing them to trade shares through traditional stock market channels.
This filing comes nearly six years after the establishment of the Grayscale Cardano Trust in Delaware. It is part of a recent trend of crypto ETF applications, including proposals for XRP, Solana, Dogecoin, and Litecoin products.
Compared to other digital assets, the interest in a Cardano ETF seems to be relatively low. Grayscale’s proposed fund will be the first spot ETF for Cardano in the US, following Tuttle Capital Management’s earlier filing for ten leveraged crypto ETFs, which included an ADA fund.
The SEC has previously categorized ADA as a security in its lawsuits against Binance and Coinbase in 2023. Similar to SOL and XRP, the existing legal obstacles may delay the listing of a spot ADA ETF or a similar investment product.
According to Bloomberg analysts, Litecoin is expected to lead in the approvals of spot crypto ETFs, as it has a more favorable regulatory outlook compared to Solana, XRP, and Dogecoin.
