Key takeout
- The NYSE ARCA has submitted a proposal to list the grayscale cardano ETFs under the ticker GADA.
- ETFs aim to provide investors with exposure to ADA through traditional stock market channels.
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The NYSE ARCA filed the 19B-4 form with the US SEC on Monday, suggesting a rule change to list and trade stocks in Grayscale Cardano Trust. The stock is expected to trade under the ticker symbol “Gada.”
The fund allows investors to gain exposure to Cardano (ADA), the ninth largest cryptocurrency by market capitalization. Sponsored by Grayscale Operating, LLC and Grayscale Investments Sponsors, The Trust directly holds the ADA, with each share representing proportional ownership of the underlying assets.
Stock prices are based on the value of the ADA as measured by the Coindesk Cardano Price Index (ADX). The Trust aims to provide a simplified investment vehicle for those who find direct crypto custody challenging, allowing investors to trade stocks through traditional stock market channels.
The filing takes place almost six years after Grayscale established the Grayscale Cardano Trust in Delaware. Joining the recent wave of Crypto ETF applications, including proposals for XRP, Solana, Dogecoin and Litecoin products.
Interest in Cardano ETFs appears to be relatively sluggish compared to other digital assets. Grayscale's proposed fund represents Cardano's first US spot ETF, following previous filings of 10 leveraged crypto ETFs, including ADA funds.
The SEC previously classified the ADA as security in the 2023 lawsuit against Binance and Coinbase. As with SOL and XRP, existing legal hurdles could delay attempts to list Spot ADA ETFs or similar investment products.
Bloomberg analysts expect Litecoin to lead the Spot Crypto ETF's upcoming approvals, with a particularly favorable regulatory outlook compared to others such as Solana, XRP and Dogecoin.
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