Key Takeaways
- The SEC acknowledged Grayscale’s filing for a Cardano Trust (ADA) ETF on NYSE Arca.
- A final decision on the Grayscale Cardano ETF is expected by August 2025.
Today, the SEC acknowledged a proposed rule change filing by NYSE Arca to list and trade shares of the Grayscale Cardano Trust (ADA), initiating a regulatory review process expected to conclude by August 2025.
NYSE Arca submitted the initial filing on February 10, 2025, followed by Amendment No. 2 on February 20, 2025, which superseded all previous versions.
The proposal seeks to list the trust’s shares under the ticker symbol GADA.
The trust aims to reflect the value of its ADA holdings, using the CoinDesk Cardano Price Index (ADX) for price determination, minus fees and expenses.
Net Asset Value calculations will occur daily at 4:00 p.m. New York time, based on price data aggregated from multiple trading platforms including Coinbase, Crypto.com, Bitfinex, and Kraken.
Coinbase Custody will secure the trust’s ADA holdings through multi-layer security measures, including geographically distributed private key storage in secure vaults and encryption techniques.
The trust will not actively manage its holdings or attempt to mitigate price fluctuations.
The regulatory review process includes a public comment period lasting 21 to 30 days, followed by continued SEC evaluation of the proposal’s compliance with investor protection, market integrity, and fraud prevention requirements.
The SEC must reach a final decision within 180 days of the filing date.
Source: https://cryptobriefing.com/grayscale-cardano-sec-august/