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In a major boost to the cryptocurrency space, Grayscale Investments has submitted an application to the U.S. Securities and Exchange Commission (SEC) to list a spot Cardano (ADA) exchange-traded fund (ETF). The development seeks to grant investors regulated access to ADA, the native coin of the Cardano blockchain, without having to buy the digital asset directly.
Grayscale’s Strategic Move
On February 10, 2025, the New York Stock Exchange subsidiary NYSE Arca filed a proposed rule change with the SEC on behalf of Grayscale. The filing requests approval to list and trade shares of the Grayscale Cardano Trust under the symbol “GADA.” If approved, this would be Grayscale’s first standalone ADA investment product, adding to its portfolio of cryptocurrency investment products.
Market Response
The news of the ETF filing has positively contributed to ADA’s market performance. In the aftermath of the announcement, ADA had a surge of about 9.3%, outpacing other top cryptocurrencies in daily growth. This improvement is an indicator of increasing investor confidence and curiosity about regulated crypto investment products.
Regulatory Landscape
The filing coincides with the SEC’s examination of a deluge of cryptocurrency ETF applications, with almost 60 in queue. This volume of filings suggests a wider embracing and inclusion of digital assets within conventional financial markets. Significantly, the SEC has just begun to recognize filings for ETFs tied to other cryptocurrencies, like Solana (SOL) and XRP, hinting at a turn towards a friendlier regulatory framework for crypto.
Implications for Investors
If the SEC were to approve Grayscale’s Cardano ETF, it would give investors a cheap and easy method of exposure to ADA through a regulated venue. This move could bring in a new influx of institutional and retail investors, potentially increasing liquidity and market stability for ADA.
As the SEC review process continues, players in the cryptocurrency and wider financial communities will be watching closely for the result. The approval of a Cardano ETF would represent a turning point in the coming of age and acceptance of cryptocurrency investments.
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