2025-02-25
The U.S. Securities and Exchange Commission (SEC) has started reviewing a proposal from Grayscale to launch a Cardano (ADA) Exchange-Traded Fund (ETF) on Feb 24, 2025.
A final decision is expected by August
2025.
The SEC is reviewing Grayscale’s
request to list the Cardano Trust (ADA) ETF on the NYSE Arca stock exchange.
The proposal was first submitted on February
10, 2025, and updated on February 20, 2025 under the ticker symbol GADA.
The trust’s goal is to reflect the
value of Cardano (ADA), using price data from CoinDesk’s Cardano Price Index
(ADX) after deducting fees and expenses.
Net Asset Value (NAV) will be
calculated daily at 4:00 p.m. (New York time), using price data from platforms
like Coinbase, Crypto.com, Bitfinex, and Kraken.
Coinbase Custody will securely store
the ADA holdings using advanced encryption and multiple security layers.
The trust will not actively trade or
manage its assets to adjust for market price changes.
Review Process
The SEC’s review includes a public
comment period of 21 to 30 days, where people can share their opinions.
The SEC will evaluate the proposal to
ensure it protects investors, maintains market integrity, and prevents fraud.
A final decision must be made within
180 days from the filing date.
The countdown has begun, and investors
will be watching closely for the SEC’s decision.
