Grayscale Files for ADA ETF, Boosting Institutional Access to Cardano
Grayscale, a prominent digital asset manager, has initiated a significant move towards increasing institutional involvement with digital assets by submitting a 19b-4 application for an ADA-centric Exchange-Traded Fund (ETF) on the New York Stock Exchange (NYSE) Arca. This represents the first endeavor to introduce Cardano's ADA into the U.S. spot ETF market.
The 19b-4 filing is a crucial step in listing a new ETF on an exchange, functioning as a formal request for a rule change. Following this action, ADA, the indigenous cryptocurrency of the Cardano blockchain, has climbed nearly 15% to $0.79. Grayscale's decision to explore an ADA ETF is part of its wider strategy to diversify institutional exposure to digital assets beyond Bitcoin and Ethereum.
Grayscale has selected BNY Mellon Asset Servicing to serve as the administrator and Coinbase Custody Trust Company as the custodian of the assets for the proposed ADA ETF. This follows the SEC's recognition of Grayscale's revised proposal to transform its existing Solana trust into a spot Solana ETF. NYSE Arca has filed to list the spot Cardano (ADA) ETF on behalf of Grayscale, which previously launched the Grayscale Bitcoin Miners ETF (MNRS) on the same exchange in January 2024.
Grayscale's 19b-4 filing for an ADA ETF signifies a substantial development in the expansion of institutional investment options in the digital asset sphere. If approved, the ETF will offer investors a new avenue to gain exposure to Cardano, potentially fueling further growth and adoption of the cryptocurrency.
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