NYSE Arca Takes First Step Toward Listing Spot Cardano (ADA) Exchange-Traded Fund (ETF)

The US Securities and Exchange Commission has acknowledged NYSE Arca’s proposal on behalf of crypto asset manager Grayscale to list and trade a spot Cardano exchange-traded fund (ETF).

The US Securities and Exchange Commission has acknowledged NYSE Arca’s proposal on behalf of crypto asset manager Grayscale to list and trade a spot Cardano exchange-traded fund (ETF).

Although it's only the first step toward approval, the SEC's Feb. 24 acknowledgment of the Grayscale Cardano Trust means the “clock” will soon start for the agency to eventually approve or reject the proposed ETF.

It comes amid a flood of crypto ETF acknowledgments from the new SEC leadership, including Cboe's XRP ETF, Grayscale's spot XRP and Dogecoin ETF, and Nasdaq's filing to set position and exercise limits on options tied to BlackRock's iShares Bitcoin Trust (IBIT).

NYSE Arca, a subsidiary of the NYSE Group, first filed a proposal with the SEC to list and trade shares of the Grayscale Cardano Trust on the stock exchange on Feb. 10.

The proposed ETF will track the price of Cardano through an index that surveys its price every day on crypto exchanges, such as Coinbase, Crypto.com, Bitfinex and Kraken.

The exchanges were chosen as part of the index based on being “in material compliance with applicable US federal and state licensing requirements.”

Investors in the ETF would not directly hold Cardano

“An investment in the Shares is not a direct investment in ADA; the Shares are designed to provide investors with a cost-effective and convenient way to gain investment exposure to ADA,” the filing says.

Coinbase Custody Trust Company is listed as the proposed custodian for the exchange-traded fund, while BNY Mellon Asset Servicing is the transfer agent and administrator.

The proposed ETF will track the price of Cardano through an index that surveys its price every day on crypto exchanges. Source: US Securities and Exchange Commission

Bitfinex does not hold any licenses or registrations in the US but was included because it met the “minimum liquidity requirement.”

A slew of other ETF applications filed

Crypto-themed ETF applications have flooded the space after the inauguration of crypto-friendly US President Donald Trump,

On Feb. 24, US securities exchange Nasdaq sought permission to list an ETF holding the Hedera Network's native token, HBAR.

Meanwhile, Feb. 19 and 20 saw the SEC acknowledge half a dozen exchange filings related to cryptocurrency ETFs in two days, including staking, options, in-kind redemptions and new types of altcoin funds.