The United States Securities and Exchange Commission (SEC) has officially acknowledged NYSE Arca’s filing for a spot Cardano exchange-traded fund (ETF), marking a significant step forward for the proposal. The filing, submitted on February 24, requests approval to list and trade shares of the Grayscale Cardano Trust under NYSE Arca Rule 8.201-E. This triggers the start of a review process that will ultimately determine whether the ETF will be approved or rejected by the SEC.
The Review Process and Timeline
The acknowledgment of the filing kicks off a 240-day review period, which begins after the SEC’s notice is published in the Federal Register—a process that typically happens shortly after the SEC’s formal acknowledgment. During this time, the SEC will evaluate the proposal, considering various factors before making its final decision.
NYSE Arca initially submitted the 19b-4 form for the Cardano ETF earlier this month, marking it as the 60th crypto ETF filing in 2025. This filing requests a rule change to facilitate the listing of the Grayscale Cardano Trust on the exchange. If successful, the trust would provide investors with exposure to Cardano (ADA) without the need to directly hold the cryptocurrency. Instead, investors would purchase shares in the trust, with the value of those shares tied to an index that tracks ADA’s price across major exchanges, including Coinbase, Kraken, Crypto.com, and Bitfinex.
Grayscale Cardano Trust: A New Way to Invest in ADA
One noteworthy detail is that despite Bitfinex not holding any US licenses, it has been included in the index due to meeting liquidity requirements. Coinbase Custody Trust Company will oversee the safekeeping of the trust’s assets, while BNY Mellon will act as the transfer agent and administrator.
If approved, this ETF would offer a new method for U.S. investors to gain exposure to Cardano, a popular altcoin that has faced significant volatility. However, despite the excitement surrounding the proposal, ADA’s price did not react positively to the news. The token was down more than 8% at the time of writing, despite an 11% surge when Grayscale first filed the 19b-4 form earlier this month.
Rising Odds for Approval
The chances of the SEC approving a Cardano ETF have increased in recent days, with Polymarket reflecting a 65% probability of approval for 2025. This marks a notable shift in sentiment, driven by the SEC’s increasingly crypto-friendly leadership and recent moves toward recognizing various crypto-related investment products.
A Broader Trend: Crypto ETFs Gaining Momentum
Grayscale’s Cardano ETF proposal is part of a broader trend of crypto ETFs gaining attention from the SEC. In February alone, the SEC formally recognized several other crypto ETF filings, including those for Litecoin (LTC) and XRP spot ETFs from CoinShares, as well as Grayscale’s spot ETF for XRP and Dogecoin. Additionally, the SEC acknowledged 21Shares’ filing for an Ethereum ETF, which would allow staking rewards for U.S. investors—a potential first for an Ethereum ETF.
Grayscale has also revised its application for a Solana spot ETF, which the SEC acknowledged on February 6, further highlighting the growing momentum for crypto ETFs in the U.S.
Conclusion
As the review process for Grayscale’s Cardano ETF moves forward, the cryptocurrency community is watching closely, hopeful that the SEC’s increasing openness to crypto ETFs signals a potential shift in how the U.S. regulatory landscape will treat digital asset investment products. With other crypto ETFs being acknowledged and progressing through the approval process, Cardano’s potential inclusion could pave the way for greater adoption of blockchain-based investment opportunities.
