The U.S. Securities and Exchange Commission (SEC) has initiated a review of Grayscale's proposal to launch a spot Cardano (ADA) exchange-traded fund (ETF). This development marks a significant step in providing regulated exposure to Cardano for institutional investors.
Grayscale, a prominent digital asset manager, filed the proposal through NYSE Arca, a subsidiary of the New York Stock Exchange. The proposed ETF aims to track the price of Cardano by utilizing an index that aggregates data from major cryptocurrency exchanges, including Coinbase, Crypto.com, Bitfinex, and Kraken. This approach ensures accurate and transparent price tracking of ADA.
The SEC's acknowledgment of the filing initiates a regulatory review process, with a decision expected by August 2025. This timeline includes a public comment period, allowing stakeholders to provide feedback on the proposal. The review will assess the ETF's compliance with investor protection, market integrity, and fraud prevention standards.
If approved, the Grayscale Cardano Trust would offer investors a cost-effective and convenient way to gain exposure to ADA without directly holding the cryptocurrency. The trust would be custodially secure, with Coinbase Custody Trust Company serving as the custodian and BNY Mellon Asset Servicing as the administrator.
This move reflects a broader trend of increasing institutional interest in cryptocurrency investment products. The SEC has recently acknowledged several other crypto ETF filings, including those for Solana (SOL), XRP, and Litecoin (LTC), indicating a growing openness to digital asset investment vehicles under the current regulatory environment.
As of July 26, 2025, Cardano (ADA) is trading at $0.82, with a slight increase from the previous close. The market continues to monitor developments in the SEC's review process, which could significantly impact ADA's accessibility to traditional investors.