Grayscale Moves Forward with Cardano ETF Filing

Grayscale has officially filed for a Cardano exchange-traded fund (ETF) with NYSE Arca, marking another step in expanding crypto investment products. 

If approved, this will be Grayscale’s first standalone Cardano ETF, allowing institutional investors to gain exposure to ADA through a regulated financial product. 

The filing comes as demand for crypto ETFs grows, with firms like Bitwise and WisdomTree also seeking approval for similar offerings. However, regulatory challenges remain, and the SEC’s decision will be crucial in shaping the future of crypto ETFs.

Grayscale Expands Crypto ETF Offerings with ADA

Grayscale has taken a major step in expanding its crypto investment products by filing for a Cardano exchange-traded fund (ETF) with NYSE Arca. The filing, submitted on February 10, proposes listing and trading shares of the Grayscale Cardano Trust, allowing institutional investors to gain exposure to ADA in a regulated format.

^{Source: NYSE}

If approved, this will be Grayscale’s first standalone Cardano investment product, marking an important milestone for ADA’s adoption in institutional finance. 

The ETF would function similarly to other spot cryptocurrency ETFs, tracking the price of Cardano without requiring investors to directly hold the asset.

Grayscale has chosen Coinbase Custody Trust Company as the custodian for the ADA holdings, while BNY Mellon Asset Servicing will handle administrative duties. 

This structure ensures that the fund operates within a regulated framework, increasing its appeal to institutional investors who may be hesitant to hold ADA directly.

This move is part of Grayscale’s broader expansion strategy. The firm has already applied for ETFs tied to Solana, XRP, and Litecoin, reflecting the growing demand for regulated crypto investment vehicles. 

If successful, the Cardano ETF could serve as a blueprint for future altcoin-based investment products.

Institutional Interest in Crypto ETFs is Growing

Grayscale’s filing comes at a time when institutional investors are increasingly interested in cryptocurrency ETFs. Since the approval of Bitcoin and Ethereum ETFs, firms have been pushing for ETFs that provide exposure to other major digital assets.

^{Source: Bloomberg}

Recently, Bitwise, WisdomTree, and 21Shares have also submitted ETF applications for Solana and XRP, aiming to expand the range of investment options for institutional players.

The SEC acknowledged Grayscale’s Solana ETF filing on February 6, but approval is still uncertain. Regulators remain cautious about expanding crypto ETFs beyond Bitcoin and Ethereum due to concerns about price manipulation, liquidity, and whether certain assets should be classified as securities.

Meanwhile, the European market is moving ahead with crypto-based investment products. Swedish asset manager Virtune AB recently launched a Cardano exchange-traded product (ETP) on Nasdaq Helsinki, catering to institutional investors looking for ADA exposure.

These developments highlight the increasing competition among financial institutions to introduce more regulated crypto investment options. However, US regulators remain hesitant, creating uncertainty about the timeline for new approvals.

Read more: Grayscale's XRP Trust to ETF Conversion

Which Crypto ETF is Likely to Be Approved First?

Among all the altcoin ETFs currently under review, Litecoin is seen as the most likely candidate for approval. Analysts believe that Litecoin’s similarities to Bitcoin, including its proof-of-work (PoW) consensus mechanism, increase its chances of being classified as a commodity rather than a security.

According to ETF analysts James Seyffart and Eric Balchunas, Litecoin has a 90% chance of receiving SEC approval in 2025. This makes it the leading contender among all pending altcoin ETF applications.

In contrast, Solana and XRP face greater hurdles. The SEC has historically been reluctant to approve ETFs for assets that could be classified as securities. Solana’s classification remains uncertain, while XRP’s legal battle with the SEC further complicates the approval process.

An unexpected entry in this debate is Dogecoin. Analysts believe that because Dogecoin operates under a proof-of-work system, similar to Bitcoin, the SEC may classify it as a commodity rather than a security. 

This gives Dogecoin a 75% probability of ETF approval, making it a stronger contender than Solana and XRP.

For Cardano, the path to ETF approval is still uncertain. While Grayscale’s filing signals strong institutional interest, ADA’s classification remains a key factor. The SEC’s stance on whether Cardano is a security will likely determine the success of this application.

How to Earn from Cardano Easily 

While the Cardano ETF approval process may take time, retail traders don’t have to wait to trade ADA. Bitrue offers a secure and user-friendly platform for trading Cardano with multiple options, including:

• Spot trading: Buy and sell ADA instantly with deep liquidity and competitive fees.
• Futures trading: Take advantage of market movements with leverage.
• Staking: Earn passive rewards by staking ADA directly on Bitrue.

Unlike traditional ETFs, trading Cardano on Bitrue provides real-time market access with no approval delays. As institutional interest in Cardano grows, the trading volume and liquidity of ADA are expected to rise, creating new opportunities for traders.

For those looking to gain exposure to Cardano before the ETF is approved, Bitrue remains the go-to platform.

Conclusion

Grayscale’s filing for a Cardano ETF represents an important step in expanding institutional access to ADA. If approved, this would be Grayscale’s first standalone investment product for Cardano, offering a regulated way for investors to gain exposure to ADA.

However, regulatory challenges remain. The SEC is still reviewing multiple ETF applications, and Litecoin is currently the most likely altcoin to receive approval due to its similarities with Bitcoin. Solana and XRP face greater hurdles due to potential security classifications, while Dogecoin is emerging as an unexpected contender for approval.

While institutional investors wait for SEC decisions, retail traders can already trade ADA on Bitrue, benefiting from deep liquidity, competitive fees, and staking rewards. 

Frequently Asked Questions

1. What is the purpose of Grayscale’s Cardano ETF?

Grayscale’s Cardano ETF aims to provide institutional investors with regulated exposure to ADA, allowing them to invest without directly holding the asset.

2. Why is Litecoin considered the most likely ETF to be approved?

Litecoin operates on a proof-of-work system similar to Bitcoin, increasing the chances that the SEC will classify it as a commodity rather than a security.

3. How can I trade Cardano before an ETF is approved?

Retail traders can buy, sell, and stake ADA on Bitrue, which offers secure trading options with low fees and high liquidity.

Investor Caution 

While the crypto hype has been exciting, remember that the crypto space can be volatile. Always conduct your research, assess your risk tolerance, and consider the long-term potential of any investment.

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