SEC Acknowledges Grayscale’s Spot Cardano ETF Filing

The U.S. Securities and Exchange Commission (SEC) has officially acknowledged the filing for Grayscale’s spot Cardano (ADA) exchange-traded fund (ETF), marking a significant milestone for institutional and retail investors looking for regulated exposure to the cryptocurrency. The acknowledgment signals the start of the SEC’s review process, a critical step in determining whether the ETF will be approved for trading on NYSE Arca.

The filing, submitted by NYSE Arca on February 10, was acknowledged by the SEC on February 24, 2025. While this doesn’t guarantee approval, it does mean that the regulatory body is now formally reviewing the proposal. The SEC’s review process typically includes a 21-to-30-day public comment period, followed by a detailed evaluation of the ETF’s compliance with federal regulations, investor protection policies, and market integrity requirements. The final decision is expected by August 2025, with approval odds currently estimated at 65%, according to Polymarket.

If approved, the Grayscale Cardano Trust will allow investors to gain exposure to Cardano (ADA) without directly holding the cryptocurrency. Instead, investors will buy shares of the trust, which will track ADA’s price through an index surveying multiple crypto exchanges, including Coinbase, Crypto.com, Bitfinex, and Kraken.

The chosen exchanges were selected based on their compliance with U.S. federal and state licensing requirements, although Bitfinex, which does not hold a U.S. license, was included due to meeting the minimum liquidity threshold.

Custody and Administration

To ensure security and transparency, the trust has designated:

• Coinbase Custody Trust Company as the custodian, responsible for securing ADA holdings with industry-standard encryption and geographically distributed private key storage.
• BNY Mellon Asset Servicing as the transfer agent and administrator, ensuring efficient operational management of the ETF.

The SEC’s acknowledgment of Grayscale’s Cardano ETF comes amid a wave of recent crypto ETF applications, reflecting increasing interest from institutional investors. Just in the past few weeks, the SEC has acknowledged multiple crypto ETF filings, including those for XRP, Dogecoin, and Hedera’s HBAR token.

This surge in crypto ETF filings follows the inauguration of a more crypto-friendly U.S. administration and new leadership within the SEC, which has led to a more open stance on digital asset investment products.

While Grayscale’s Bitcoin (GBTC) and Ethereum (ETHE) trusts have already gained traction, the Cardano ETF could provide broader access to ADA, especially for institutional investors hesitant to manage private keys or deal with direct crypto transactions. However, market reactions have been mixed—despite the announcement, ADA’s price declined by 8.97%, currently trading at $0.6833.

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