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- On behalf of Grayscale, NYSE Arca has submitted an application for a Cardano ETF, aligning with the company’s broader strategy to grow its cryptocurrency ETF portfolio.
- Following the announcement, ADA surged 16% in the past 24 hours, climbing to $0.7059 as investor excitement grew.
Grayscale Investments, the world’s leading digital asset manager, has officially submitted an application to the New York Stock Exchange (NYSE) for a Cardano (ADA) exchange-traded fund (ETF). This represents a major milestone for the cryptocurrency industry, as it marks the first attempt to introduce ADA into the U.S. spot ETF market. The move follows the SEC’s acknowledgment on February 6 of Grayscale’s amended filing to convert its existing Solana Trust into a spot Solana ETF, highlighting the increasing interest in cryptocurrency ETFs.
Grayscale’s Push for Crypto ETFs
The filing highlights Grayscale’s strategy to expand its presence in the cryptocurrency ETF space, as the firm has already filed similar applications for other cryptocurrencies, including Ripple (XRP), Solana (SOL), and Litecoin (LTC). If approved, the Cardano ETF would join Grayscale’s crypto ETFs, which currently include the Grayscale Bitcoin Trust ETF, Bitcoin Mini Trust ETF, Ethereum Mini ETF, and Ethereum Trust ETF.
The Delaware Trust Company will serve as the trustee for the Cardano ETF, ensuring the fund operates within regulatory guidelines. Additionally, Coinbase has been designated as the custodian, continuing its role as the principal custodian for several Bitcoin-related funds. This means that Coinbase will be responsible for holding and safeguarding the ADA assets backing the ETF.
Grayscale emphasized that the Cardano ETF is designed to promote fair and transparent trading practices, ensuring that investors have access to reliable price and market information. The company stated that “there is a considerable amount of ADA price and market information available on public websites and through professional and subscription services,” making it suitable for an ETF.
Meanwhile, Bloomberg ETF analysts James Seyffart and Eric Balchunas have noted that the chances of cryptocurrency ETFs gaining approval are increasing. Balchunas estimates the approval odds for various crypto ETFs as follows: Litecoin ETFs at 90%, Dogecoin ETFs at 75%, Solana ETFs at 70%, and XRP ETFs at 65%. He pointed out that these odds have risen particularly since Donald Trump’s presidential election victory, which has led to more crypto-friendly policies in the U.S.
NEW: @EricBalchunas and I took a look at the filings for spot crypto ETFs. We're putting out relatively high odds of approval across the board. Mainly focused on Litecoin, Solana, XRP, and Dogecoin for now.
Here's the table with the odds and some other details: pic.twitter.com/xaXaNXLb0M
— James Seyffart (@JSeyff) February 10, 2025
The growing number of ETF applications for various digital assets reflects this shift in sentiment. On January 30, Grayscale submitted a proposal to the SEC to convert its XRP Trust into an Exchange-Traded Product. Just days later, on February 6, Cboe BZX Exchange filed 19b-4 applications on behalf of Canary Capital, WisdomTree, and Bitwise to launch the first spot XRP ETFs in the U.S. Meanwhile, 21Shares, Bitwise, VanEck, and Canary Capital are also competing to list a spot Solana ETF, further intensifying the race for crypto-based financial products.
Since the announcement, ADA’s price has experienced a strong rally. In the last 24 hours, ADA has surged nearly 16% and is up 5% in the past week, reaching $0.7959 as of this writing. However, despite the price spike, ADA remains 74% below its all-time high of $3.10. Additionally, trading volume has surged by 43.46% in the last 24 hours, bringing the total volume to approximately $1.1 billion, indicating heightened investor interest in Cardano.
