Key Takeaways
- The NYSE Arca filed a proposal to list the Grayscale Cardano ETF under the ticker GADA.
- The ETF aims to offer investors exposure to ADA through traditional stock market channels.
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NYSE Arca on Monday filed a 19b-4 form with the US SEC, proposing a rule change to list and trade shares of the Grayscale Cardano Trust. The shares are expected to trade under the ticker symbol “GADA.”
The fund would enable investors to gain exposure to Cardano (ADA), the ninth-largest crypto asset by market capitalization. Sponsored by Grayscale Operating, LLC and Grayscale Investments Sponsors, LLC, the trust would hold ADA directly, with each share representing proportional ownership of the underlying assets.
Share pricing would be based on ADA’s value as measured by the CoinDesk Cardano Price Index (ADX). The trust aims to provide a simplified investment avenue for those who find direct crypto custody challenging, allowing investors to trade shares through traditional stock market channels.
The filing comes nearly six years after Grayscale established the Grayscale Cardano Trust in Delaware. It joins a recent wave of crypto ETF applications, including proposals for XRP, Solana, Dogecoin, and Litecoin products.
Interest in a Cardano ETF appears to be relatively muted compared to other digital assets. Grayscale’s proposed fund represents the first US spot ETF for Cardano, following Tuttle Capital Management’s earlier filing for ten leveraged crypto ETFs, which included an ADA fund.
The SEC previously classified ADA as a security in its 2023 lawsuits against Binance and Coinbase. Like SOL and XRP, existing legal hurdles might delay any attempt to list a spot ADA ETF or similar investment product.
Bloomberg analysts predict that Litecoin will lead in the upcoming approvals of spot crypto ETFs, having a particularly favorable regulatory outlook compared to others like Solana, XRP, and Dogecoin.
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