Grayscale Files for First-Ever Cardano ETF, ADA Price Surges 12%

Grayscale Files for First-Ever Cardano ETF, ADA Price Surges 12%

  • Grayscale Investments has filed for a Cardano ETF with NYSE Arca, potentially creating the first exchange-traded product for ADA.
  • Cardano’s price surged 12% to $0.748 following the ETF filing announcement.
  • The proposed ETF would join Grayscale’s existing crypto ETF lineup, including Bitcoin and Ethereum products.
  • Coinbase Custody Trust Company will handle cold storage of the Trust’s ADA holdings.
  • The filing follows recent SEC approvals of Bitcoin and Ethereum spot ETFs in the United States.

Grayscale Investments, one of the largest digital asset managers, has submitted documentation through NYSE Arca to launch the first-ever Cardano exchange-traded fund. The filing represents a significant move to expand institutional access to the world’s ninth-largest cryptocurrency by market capitalization.

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The announcement triggered immediate market reaction, with Cardano (ADA) experiencing a 12% price increase to $0.748, outperforming all other top-10 cryptocurrencies according to CoinGecko data. The proposed ETF would operate under NYSE Arca Rule 8.201-E, which governs “Commodity-Based Trust Shares.”

Grayscale currently manages over 20 crypto investment vehicles, including their flagship Bitcoin Trust ETF, which converted from a trust structure in 2023. The firm stated in the filing: “The proposed rule change is designed to promote just and equitable principles of trade and to protect investors and the public interest in that there is a considerable amount of ADA price and market information available.”

The custody structure involves the Delaware Trust Company as trustee, while Coinbase Custody Trust Company will maintain the Trust’s ADA holdings in cold storage – a security measure where cryptocurrencies are stored offline to prevent unauthorized access.

This filing follows the historic approval of Bitcoin and Ethereum spot ETFs in 2023, which marked a watershed moment for cryptocurrency adoption in traditional finance. Market observers anticipate potential approvals for other cryptocurrency ETFs, with Dogecoin-xrp-solana-trump/”>Solana, XRP, and Dogecoin among the candidates under consideration.

If approved, the Cardano ETF would provide institutional investors with regulated exposure to ADA’s price movements without directly holding the cryptocurrency, potentially expanding the asset’s accessibility to traditional investment portfolios.

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