Grayscale’s Cardano ETF proposal officially acknowledged by SEC

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SEC’s Cardano ETF: A Comedy of Errors or a Financial Masterpiece? 😂💰

In the grand theater of finance, where dreams and dollars dance, NYSE Arca has taken a bow, presenting its latest act: a spot Cardano exchange-traded fund, now graced with the nod of the United States Securities and Exchange Commission. A round of applause, please! 👏

As the clock struck February 24, the regulator, in its infinite wisdom, acknowledged this proposal to list and trade shares of the Grayscale Cardano Trust under the illustrious NYSE Arca Rule 8.201-E. And thus, the curtain rises on the review process, where the SEC will don its judge’s robe to decide the fate of this ETF—will it be a standing ovation or a resounding boo? 🎭

With the filing now in the spotlight, a 240-day review window opens, like a slow-motion scene in a dramatic film, once the filing graces the pages of the Federal Register. This usually happens faster than you can say “cryptocurrency,” which is a mouthful in itself!

Earlier this month, NYSE Arca filed this proposal through a 19b-4 form, marking the 60th crypto ETF filing of the year. A formal request for a rule change, it must now secure an S-1 registration statement before it can waltz onto the trading floor. Talk about a bureaucratic tango! 💃

If the stars align and approval is granted, the Grayscale Cardano Trust will allow investors to dip their toes into the Cardano (ADA) waters without actually holding the asset. Instead, they’ll buy shares of the trust, with prices tied to an index tracking ADA’s value across major exchanges like Coinbase, Kraken, Crypto.com, and Bitfinex. Yes, even Bitfinex, the rebellious child without US licenses, made the cut because it met liquidity requirements. Who knew liquidity could be so forgiving? 😏

Meanwhile, Coinbase Custody Trust Company will play the role of the diligent guardian, safeguarding the fund’s assets, while BNY Mellon takes on the dual roles of transfer agent and administrator. A match made in financial heaven, or just another day in the office? 🤷‍♂️

As for ADA, it seems to be playing hard to get, down over 8% at the time of writing. Ironically, when Grayscale first filed the 19b-4, the altcoin shot up 11%. Talk about a rollercoaster of emotions! 🎢

In a twist of fate, the odds of the SEC approving a Cardano ETF in 2025 have risen by over 10% in just a day on Polymarket, now reflecting a 65% chance of approval. Hope springs eternal in the hearts of crypto enthusiasts! 🌱

With crypto-friendly leadership at the SEC, the industry holds its breath, hoping for a more welcoming embrace of digital asset investment products. This acknowledgment of Grayscale’s Cardano ETF filing is merely the latest act in a series of similar performances by the SEC in recent weeks. February alone has seen the commission formally recognize multiple crypto ETF filings across a range of assets. A veritable buffet of possibilities! 🍽️

Just days prior, the SEC acknowledged a 19b-4 filing from 21Shares via the Cboe BZX Exchange, aiming to allow the staking of Ethereum within its ETF. If approved, this would mark the first instance of an Ethereum ETF offering staking rewards to US investors. A delicious prospect, indeed! 🍰

Filings for Litecoin (LTC) and XRP spot ETFs from CoinShares were also officially acknowledged, alongside Grayscale’s proposal for a spot XRP and Dogecoin ETF. And let’s not forget Grayscale’s revised application for a Solana (SOL) spot ETF, which was acknowledged by the SEC on February 6. The plot thickens! 📈

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2025-02-25 10:28