SEC Acknowledges Grayscale’s Cardano ETF as Review Process Starts

• The SEC has acknowledged Grayscale’s Cardano ETF filing, starting the official review process.
• Investors could access Cardano through the ETF without directly holding the cryptocurrency .
• The SEC’s decision on the Cardano ETF is expected by August 2025.

The U.S. Securities and Exchange Commission has acknowledged Grayscale’s request to launch a spot Cardano exchange-traded fund. This marks the official start of the SEC’s review process which will determine whether the ETF can be listed and traded on the New York Stock Exchange Arca. 

The SEC issued its formal approval on February 24, 2025 following NYSE Arca’s initial filing from February 10, 2025. The process will move forward to a detailed evaluation phase.

Review Process Underway for Grayscale’s Cardano ETF

The filing aims to provide regulated exposure to Cardano (ADA) for investors. The Cardano ADA ETF would allow individuals to buy and sell shares in the Grayscale Cardano Trust. This trust would track the price of ADA and the shares in the trust would represent proportional interests in its ADA holdings. As a result, investors could gain exposure to Cardano without needing to directly hold the cryptocurrency. 

The SEC’s acknowledgment has signaled a growing interest in crypto ETFs hence the SEC has started reviewing several other filings. The proposals for ETFs under review are related to Solana (SOL), XRP , and Litecoin (LTC). Additionally, Nasdaq has submitted a proposal for an ETF involving Hedera Network’s native token, HBAR.

Increased Optimism for Crypto ETFs

The acknowledgment of Grayscale’s Cardano ETF filing has boosted optimism for crypto-based investment products. Polymarket’s odds of approval for the ETF have risen to 64%. This optimism is further fueled by the SEC’s increasing acceptance of various cryptocurrency ETFs, covering staking, options, and new altcoin funds. 

The SEC is expected to have reached a decision on the Grayscale Cardano ETF by August 2025. This timeline will include a public comment period of 21 to 30 days. The SEC’s approval process will also include an evaluation to ensure compliance with investor protection, market integrity and fraud prevention. 

The price of Cardano (ADA) has remained constant despite making progress. It is trading at $0.6833 and experienced a decline of 8.97% from its intraday high at the time of reporting.