Key Takeaways
The NYSE Arca has submitted a proposal to list the Grayscale Cardano ETF, with the ticker symbol GADA.
This ETF aims to provide investors with exposure to ADA through traditional stock market channels.
On Monday, NYSE Arca filed a 19b-4 form with the US SEC, requesting a rule change to list and trade shares of the Grayscale Cardano Trust. The shares are expected to be traded under the ticker symbol “GADA.”
The fund will allow investors to gain exposure to Cardano (ADA), the ninth-largest cryptocurrency by market capitalization. Sponsored by Grayscale Operating, LLC and Grayscale Investments Sponsors, LLC, the trust will hold ADA directly, with each share representing 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 hold cryptocurrencies, enabling them to trade shares through traditional stock market channels.
This filing comes nearly six years after Grayscale established the Grayscale Cardano Trust in Delaware. It is part of a recent wave of crypto ETF applications, including proposals for XRP, Solana, Dogecoin, and Litecoin products.
Compared to other digital assets, there seems to be relatively less interest in a Cardano ETF. Grayscale’s proposed fund will be the first US spot ETF for Cardano, following Tuttle Capital Management’s earlier filing for ten leveraged crypto ETFs, which included an ADA fund.
In its 2023 lawsuits against Binance and Coinbase, the SEC previously classified ADA as a security. Similar to SOL and XRP, existing legal obstacles may hinder the listing of a spot ADA ETF or a similar investment product.
According to Bloomberg analysts, Litecoin is expected to be the frontrunner in the upcoming approvals of spot crypto ETFs, as it has a more favorable regulatory outlook compared to others like Solana, XRP, and Dogecoin.