SEC Acknowledges NYSE Arca’s Filing for Grayscale Cardano ETF

The United States Securities and Exchange Commission (SEC) has officially acknowledged NYSE Arca’s filing for a spot Cardano (ADA) exchange-traded fund (ETF), marking a major step in the regulatory review process.

According to a notice published on February 24, the SEC has formally recognized the proposal to list and trade shares of the Grayscale Cardano Trust under NYSE Arca Rule 8.201-E.

This acknowledgment initiates a 240-day review period, during which the commission will determine whether to approve or reject the ETF. The countdown begins once the filing is published in the Federal Register, typically within days of SEC acknowledgment.

A Step Toward Mainstream Cardano Investment

The filing, submitted via a 19b-4 form earlier this month, marks one of 60 crypto ETF filings this year alone. If approved, the Grayscale Cardano Trust would provide institutional and retail investors with exposure to Cardano (ADA) without requiring direct ownership of the digital asset.

Instead, shares of the trust would track an index reflecting ADA’s price movements across major exchanges, including Coinbase, Kraken, Crypto.com, and Bitfinex—the latter of which remains unlicensed in the U.S. but was included for meeting liquidity requirements.

The fund’s assets would be safeguarded by Coinbase Custody Trust Company, while BNY Mellon would serve as the transfer agent and administrator.

Market Reaction and Approval Odds

Despite the milestone, ADA’s price failed to react positively, declining more than 8%. This contrasts with the cryptocurrency’s 11% surge following the initial 19b-4 filing earlier this month.

Meanwhile, market confidence in a Cardano ETF approval has increased. On Polymarket, a decentralized betting platform, the odds of the SEC greenlighting a Cardano ETF in 2025 rose by over 10% in the past day, reaching 65%.

Growing Optimism for Crypto ETFs

The SEC’s acknowledgment of Grayscale’s Cardano ETF filing is part of a broader wave of crypto investment product considerations. In recent weeks, the commission has formally recognized multiple crypto ETF proposals across various assets.

Just days earlier, the SEC acknowledged a 19b-4 filing from 21Shares via Cboe BZX Exchange, which seeks to introduce an Ethereum ETF with staking rewards—a first for U.S. investors if approved. Additionally, spot ETFs for Litecoin (LTC), XRP, and Dogecoin (DOGE) from firms like CoinShares and Grayscale have also been formally acknowledged.

With shifting regulatory attitudes and increased pressure from institutional investors, the crypto industry remains hopeful that a more crypto-friendly SEC could pave the way for wider adoption of digital asset investment products.

The coming months will be critical in determining whether Cardano joins Bitcoin and Ethereum in the expanding U.S. crypto ETF market.