TLDR
- NYSE Arca has submitted a filing to the SEC seeking approval for Grayscale’s first Cardano-based ETF under the ticker GADA
- The proposal follows the recent success of Bitcoin and Ethereum ETFs in the US market
- Cardano’s ADA token price increased 12% to $0.748 after the announcement
- The trust will be secured by Coinbase Custody and use regulated exchanges for price calculations
- Additional crypto ETF proposals from Grayscale include Solana, XRP, and Dogecoin conversions
A new chapter in cryptocurrency investment vehicles opened on February 10, 2025, as NYSE Arca submitted a proposal to the Securities and Exchange Commission (SEC) for the first-ever Cardano exchange-traded fund in the United States. The proposed ETF would trade under the ticker GADA and represent Grayscale’s latest expansion into the growing crypto ETF market.
The proposal comes at a time when traditional finance continues to embrace digital assets through regulated investment products. Under the filing, the Grayscale Cardano Trust would offer investors a way to gain exposure to ADA, Cardano’s native cryptocurrency, through their standard brokerage accounts.
Market reaction to the filing proved immediate and positive, with ADA’s value climbing 12% to reach $0.748. This price movement placed Cardano at the forefront of cryptocurrency gains among the top 10 digital assets by market capitalization on the announcement day.
The trust’s structure incorporates several layers of institutional oversight. Coinbase Custody would maintain the trust’s ADA holdings in cold storage, while the Delaware Trust Company would serve as the trustee. This arrangement aims to provide secure asset management while meeting regulatory requirements.
Daily valuation of the trust’s assets would rely on price data from established cryptocurrency exchanges, including Coinbase and Kraken. This approach seeks to ensure accurate and transparent pricing for investors while following traditional ETF practices.
The filing falls under NYSE Arca Rule 8.201-E, which governs commodity-based trust shares. This classification places the proposed Cardano ETF in the same category as other commodity-based investment products, providing a familiar framework for regulators and investors alike.
For potential investors, the ETF would eliminate common barriers to cryptocurrency investment, such as managing digital wallets or navigating cryptocurrency exchanges. Instead, they could buy and sell shares through their existing brokerage accounts, much like traditional stocks or ETFs.
Grayscale’s track record in the cryptocurrency investment space includes managing over 20 crypto-related products. The firm successfully converted its Bitcoin Trust into an ETF earlier, establishing a precedent for similar conversions of other digital asset products.
The SEC’s decision timeline gives the regulatory body 45 days to initially respond to the filing. During this period, they may approve, reject, or extend their review of the proposal based on their assessment of market readiness and investor protection measures.
The broader context includes Grayscale’s recent moves to expand its ETF offerings. The company has filed to convert existing trusts for other cryptocurrencies, including Solana, XRP, and Dogecoin, into spot ETFs. In January 2025, they launched a Dogecoin Trust, following a similar path to their successful Bitcoin and Ethereum ETF conversions.
Cardano itself brings unique attributes to the ETF landscape. Launched in 2017, the blockchain platform utilizes proof-of-stake technology and supports smart contracts and decentralized applications, positioning it as a multifunctional digital asset.
The proposed ETF would calculate its net asset value daily, providing investors with regular updates on their holdings’ worth. Authorized participants would handle the creation and redemption of shares through cash transactions, maintaining the ETF’s market efficiency.
NYSE Arca’s filing emphasizes the robust availability of ADA market data through public and professional channels, supporting their argument for the ETF’s ability to operate fairly and transparently.
If approved, the Cardano ETF would join Grayscale’s existing family of crypto ETFs, which includes both standard and mini versions of Bitcoin and Ethereum funds. This expansion would offer investors additional options for diversifying their cryptocurrency exposure through regulated vehicles.
The involvement of established financial institutions as trustee and custodian adds credibility to the proposed fund structure, potentially addressing some of the SEC’s historical concerns about cryptocurrency investment products.
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