SEC Evaluates Grayscale’s Cardano ETF—ADA Poised for Explosive Growth?

• On February 24, the U.S. SEC officially acknowledged Grayscale Investments’ filing for a spot Cardano Exchange-Traded Fund.
• Optimism is growing as the SEC acknowledges multiple cryptocurrency ETF filings, including those related to staking, options, in-kind redemptions, and altcoin funds.

The U.S. Securities and Exchange Commission (SEC) has officially acknowledged Grayscale Investments’ filing for a spot Cardano (ADA) exchange-traded fund (ETF), marking a significant milestone in the regulatory approval process. This acknowledgment initiates a 180-day review period, during which the SEC will assess whether the ETF meets federal securities law requirements. Key considerations include investor protection, market integrity, and price transparency. If approved, this would become the first-ever spot ADA ETF in the United States.

As mentioned in our previous news brief, the proposal was submitted on February 10, 2025, by NYSE Arca, a subsidiary of the NYSE Group, on behalf of Grayscale. The ETF, if approved, would be listed under the ticker “GADA” and would provide investors with exposure to ADA’s price movements without requiring direct cryptocurrency ownership.

The fund’s value will be determined by an index that aggregates Cardano’s price data from major cryptocurrency exchanges, including Coinbase, Crypto.com, Bitfinex, and Kraken. To ensure security and proper fund management, Coinbase Custody Trust Company has been appointed as the custodian responsible for safeguarding the ADA holdings. Meanwhile, BNY Mellon Asset Servicing will handle administrative duties, acting as the transfer agent and overseeing fund operations.

As part of this process, a public comment period has been opened, allowing stakeholders, including financial institutions, retail investors, and regulatory experts, to weigh in on the proposal.

Growing Institutional Interest in Altcoin ETFs

Grayscale’s push for a spot Cardano ETF reflects the growing institutional demand for cryptocurrency investment products beyond Bitcoin and Ethereum. With the SEC approving spot Bitcoin ETFs in early 2024 and President Donald Trump’s pro-crypto stance, the regulatory climate for crypto-based ETFs is becoming more receptive.

The SEC has been actively reviewing multiple crypto ETF applications, signaling a potential shift toward broader acceptance of cryptocurrency investment products. Among the acknowledged filings are Cboe’s XRP ETF and NYSE Arca’s January 30 19b-4 application to convert Grayscale’s XRP Trust into a spot ETF. 

Grayscale has solidified its role as a key player in the crypto investment sector, having already introduced Bitcoin (GBTC) and Ethereum (ETHE) trusts that track respective asset prices. With its latest ETF applications, the firm continues expanding its offerings, reflecting growing institutional interest in regulated crypto products beyond Bitcoin (BTC) and Ethereum (ETH).

Despite the positive regulatory development, Cardano’s price has not shown signs of recovery. As of press time, ADA is trading at $0.6833, marking an 11% decline in the last 24 hours and a 15% drop over the past week. However, trading volume has surged by 113%, reaching $1.19 billion in the last 24 hours, indicating heightened market activity. If regulatory approvals and network developments align, Cardano may be set for an explosive breakout in the coming months.