SEC's Wild Ride: Grayscale's Cardano ETF Proposal Sparks Crypto Frenzy!

Well, well, well! The US Securities and Exchange Commission has finally decided to acknowledge NYSE Arca’s proposal, courtesy of our favorite crypto asset manager, Grayscale. They want to list and trade a spot Cardano exchange-traded fund (ETF). Yes, you heard that right—Cardano! 🎉

Now, before you start popping the champagne, let’s not get ahead of ourselves. This is merely the first step toward approval. The SEC’s acknowledgment on February 24 means the “clock” is ticking. Will they approve it? Will they reject it? It’s like waiting for a sequel to a movie you didn’t even like in the first place! ⏳

This announcement comes amidst a veritable deluge of crypto ETF acknowledgments from the new SEC leadership. We’ve got Cboe’s XRP ETF, Grayscale’s spot XRP and Dogecoin ETF, and even Nasdaq’s filing to position and exercise limits on options tied to BlackRock’s iShares Bitcoin Trust (IBIT). It’s like a crypto buffet, and everyone’s invited! 🍽️

Now, let’s talk about NYSE Arca. This fine subsidiary of the NYSE Group first filed a proposal with the SEC to list and trade shares of the Grayscale Cardano Trust on February 10. Talk about being fashionably late to the party! 🎈

The proposed ETF will track the price of Cardano through an index that surveys its price every day on crypto exchanges like Coinbase, Crypto.com, Bitfinex, and Kraken. You know, the usual suspects. They were chosen because they’re “in material compliance with applicable US federal and state licensing requirements.” Fancy, right? 🕴️

But hold your horses! Investors in the ETF won’t actually hold Cardano (ADA). Instead, they’ll have shares in the trust. “An investment in the Shares is not a direct investment in ADA; the Shares are designed to provide investors with a cost-effective and convenient way to gain investment exposure to ADA,” the filing says. So, basically, it’s like having a slice of cake without the calories. 🍰

Coinbase Custody Trust Company is set to be the proposed custodian for this exchange-traded fund, while BNY Mellon Asset Servicing will play the role of the transfer agent and administrator. Sounds like a party of financial heavyweights! 💼

Oh, and let’s not forget Bitfinex. They don’t hold any licenses or registrations in the US, but they made the cut because they met the “minimum liquidity requirement.” It’s like getting into a club without an ID—impressive, if not a little sketchy! 😅

A slew of other ETF applications filed

Crypto-themed ETF applications have been flooding in like it’s Black Friday after the inauguration of crypto-friendly US President Donald Trump. Who knew politics could be so exciting? 🥳

On February 24, US securities exchange Nasdaq sought permission to list an ETF holding the Hedera Network’s native token, HBAR. Meanwhile, February 19 and 20 saw the SEC acknowledge half a dozen exchange filings related to cryptocurrency ETFs in just two days. Staking, options, in-kind redemptions, and new types of altcoin funds—oh my! It’s a crypto carnival out there! 🎡

2025-02-25 06:03

SEC’s Wild Ride: Grayscale’s Cardano ETF Proposal Sparks Crypto Frenzy!

A slew of other ETF applications filed

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