NYSE Arca has submitted a 19b-4 filing to the U.S. Securities and Exchange Commission seeking approval to list and trade shares of the Grayscale Cardano Trust, proposed under the ticker GADA. If approved, the product would become the first U.S. exchange-traded fund linked to Cardano’s ADA token, giving investors a regulated way to access ADA exposure without directly holding the asset.
How the proposed product would work
According to the Feb. 10 filing, the trust is being advanced under NYSE Arca Rule 8.201-E for commodity-based trust shares. The vehicle would hold ADA tokens directly, and each share would represent fractional ownership of the underlying assets, less expenses. Its net asset value (NAV) would be calculated daily using an index price sourced from multiple regulated crypto trading venues, including Coinbase and Kraken.
For custody, Coinbase Custody would safeguard the trust’s assets. Share creations and redemptions would take place through cash transactions handled by authorized brokers, a structure that aligns with the framework used by several existing U.S. crypto investment products and reflects ongoing efforts to meet regulatory expectations around custody and market integrity.
Why the filing matters
The proposal follows Grayscale’s earlier success in converting its bitcoin trust into an ETF. While the SEC has historically been cautious about approving crypto ETFs beyond bitcoin, largely due to concerns over market manipulation and custody risks, the regulatory landscape has evolved. The agency approved ether-based ETFs in July last year, opening the door to broader discussion around other digital asset-backed products.
Cardano, launched in 2017, is one of the better-known proof-of-stake blockchains, with smart contract functionality, decentralized application support, and governance features. The filing therefore represents more than a single product application: it signals growing institutional appetite for regulated exposure to crypto assets beyond bitcoin and ether.
Under the SEC process, the agency has 45 days to approve, reject, or extend its review. The outcome remains uncertain, but the filing marks a notable step toward bringing ADA into the U.S. regulated ETF market.