- Grayscale’s proposed Cardano ETF could provide regulated exposure to ADA, potentially opening doors for institutional investment by August 2025.
- The SEC’s acknowledgment of Grayscale’s filing boosts optimism for ADA’s ETF approval, with approval odds at 64% as the review process begins.
Grayscale’s proposed spot Cardano (ADA) exchange-traded fund (ETF) has gained attention, with the U.S. Securities and Exchange Commission (SEC) now officially acknowledging the filing. As the review begins, the crypto community, particularly Cardano supporters, is closely watching for updates.
The proposed ETF aims to provide a regulated way for investors to gain exposure to Cardano without directly holding the cryptocurrency, and this move could mark a major moment for ADA in 2025.
The SEC’s acknowledgment of Grayscale’s Cardano ETF filing, which was officially noted on February 24, 2025, as reported by ETHNews, signals the start of a regulatory review process. The filing, submitted earlier in February by NYSE Arca, sets the stage for a vote that could shape the future of Cardano’s accessibility in mainstream markets.
Investors and the broader crypto community are awaiting further developments. The SEC’s decision, expected by August 2025, will determine whether ADA will have its own regulated ETF on NYSE Arca.
Key Features of the Cardano ETF Proposal
Grayscale’s ETF would track the price of Cardano by using an index that gathers data from various major cryptocurrency exchanges, including Coinbase, Kraken, Bitfinex, and Crypto.com. This approach ensures the accuracy and transparency of ADA’s price tracking.
The proposed fund will allow investors to buy and sell shares of the Grayscale Cardano Trust, which will be backed by ADA holdings, offering a way to gain exposure to the asset without directly purchasing the cryptocurrency.
Additionally, Grayscale has ensured that the trust will be custodially secure, with Coinbase Custody Trust Company listed as the custodian. The firm is set to use advanced security measures, including encrypted vaults and geographically distributed private keys. BNY Mellon Asset Servicing will also play a key role as the transfer agent, ensuring smooth ETF management and operations transparency.
Review Process and Timeline
The SEC’s review process is expected to take up to 180 days, with the possibility of an extension if necessary. The next step will involve a public comment period lasting between 21 and 30 days.
Afterward, the SEC will evaluate whether the ETF complies with regulations designed to protect investors and maintain market integrity. The SEC has already acknowledged several other crypto ETF filings, so according to prediction platforms, the odds of approval for Grayscale’s Cardano ETF have risen to 67%.
If the ETF is approved, as noted in our previous post, it could impact how traditional investors access ADA, opening the door for general institutional participation in the Cardano ecosystem. Grayscale’s successful track record with Bitcoin (GBTC) and Ethereum (ETHE) Trusts adds weight to the proposal, fueling optimism among supporters.
Despite ADA’s recent price drop, the overall sentiment remains bullish. There is growing confidence that institutional adoption could drive demand for Cardano. Currently, ADA is trading at $0.6643, reflecting a 10.93% decrease in value over the past 24 hours.
The post Grayscale’s Cardano ETF Filing Kicks Off Regulatory Review—Here’s What’s Next for ADA appeared first on ETHNews.
