ADA Spikes 15% As Grayscale Seeks Approval For First-Ever Spot Cardano ETF In The US

Crypto investment firm Grayscale is seeking to introduce a Cardano (ADA) exchange-traded fund on the New York Stock Exchange as the race for crypto ETFs heats up. This is notably the first spot ADA ETF in the US and Grayscale’s first standalone Cardano investment product.

ADA, the ninth-largest crypto by market cap, has jumped 15% on the day following news of the crypto giant’s ETF filing.

ADA Gains Steam In Altcoin ETF Race With Grayscale Filing

On Feb. 10, the NYSE Arca submitted the 19b-4 form to the Securities and Exchange Commission (SEC), proposing a rule change to list and trade shares of the new Grayscale Cardano Trust. The shares are expected to trade under the ticker “GADA.”

If approved, Grayscale’s Cardano ETF would be the first ETF of its kind filed in the U.S. and would allow investors to gain direct exposure to ADA. The custodian would be Coinbase Custody Trust Company, and BNY Mellon Asset Servicing would serve as the administrator, according to Grayscale’s ADA ETF filing.

https://twitter.com/EricBalchunas/status/1889118413240312187

“The proposed rule change is designed to promote just and equitable principles of trade and to protect investors and the public interest in that there is a considerable amount of ADA price and market information available on public websites and through professional and subscription services,” the application reads.

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So far, only Bitcoin and Ether spot products have been greenlighted for trading in the US, with the SEC approving these products early last year. The SEC previously labeled ADA an unregistered security in its enforcement actions against leading exchanges, including Binance, Coinbase, and Kraken.

As investors await to see if the ADA ETF is given the regulatory nod, crypto enthusiasts are hopeful that other altcoin ETFs — including Dogecoin, XRP, Litecoin, and Solana ETFs — will be approved in the coming months. Notably, the SEC is expected to take a friendlier stance on crypto under the new administration.

The regulator recently acknowledged Grayscale’s amended filing to convert its existing Solana trust into a spot Solana ETF. But according to Bloomberg analysts, Litecoin will lead in the upcoming spot crypto ETF approvals as it has a particularly promising regulatory outlook compared to others like Solana and XRP.

ADA Price Jumps

Meanwhile, the news of Grayscale filing for a spot Cardano ETF boosted the price of the asset today. ADA has gained roughly 14.8% over the past 24 hours to change hands at $0.8051 as of publication time, according to CoinGecko data.

The rally pushed its weekly gains to 15%, nearly recouping all losses from last week’s pullback. However, the crypto is still down 74.4% from its September 2021 all-time high of $3.09.