The US SEC has acknowledged the rule change application for a Grayscale Cardano ETF filed by the NYSE Arca, giving the chances of approval a major boost.
In a Monday release, the US Securities and Exchange Commission (SEC) acknowledged the application for a Cardano ETF filed by the New York Stock Exchange (NYSE) Arca. The product, filed in asset manager Grayscale’s stead, will track the performance of ADA, the ninth-largest cryptocurrency by market cap.
Cardano Sees Boost in the Altcoin ETF Race
Recall that on February 10, the NYSE Arca filed a 19b-4 application with the US SEC for a Grayscale Cardano Trust. The rule change request shows the intention of the exchange list and trade shares of the Grayscale-managed Cardano ETF.
The Cardano investment vehicle will provide alternative exposure to institutional and retail investors seeking exposure to ADA. Notably, the Grayscale Cardano ETF has Coinbase as a custodian and BNY Mellon as the administrator and transfer agent.
Yesterday, the US SEC acknowledged it has received the application, a major step in the approval process. Notably, the latest development came after the NYSE Arca amended the earlier filing on February 20.
With the acknowledgment, the regulator opened the window for public comments. The US SEC will allow comments for 21 days from the publication date, with the phase expected to close in mid-March.
Meanwhile, this is just the first step in the approval process. If the application advances, the NYSE Arca would submit an S-1 filing with several amendments before the securities watchdog finally approves the Grayscale Cardano Trust.
A Flurry of Altcoin ETFs Set for Approval
A year ago, the chances of launching another spot crypto ETF in the United States looked slim due to the US SEC’s disposition toward most altcoins. The Gary Gensler-led administration classified Cardano and Solana as unregistered securities, while its years-long litigation with Ripple hindered an XRP ETF.
However, the tides are quickly turning, and the odds of another altcoin ETF are escalating. The US SEC has progressed with other applications, with Litecoin and Hedera spot ETFs being the closest to approval.
The SEC has also acknowledged ETF applications for XRP, Dogecoin, and Solana, which is reasonable progress in the approval process. Notably, analysis has suggested that the investment products would facilitate capital inflow into the altcoin market, bringing a similar price effect to Bitcoin’s.
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