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NYSE Arca, a subsidiary of the New York Stock Exchange, has taken a big step for cryptocurrency investments by filing a proposal with the U.S. Securities and Exchange Commission (SEC) to launch a spot exchange-traded fund (ETF) for Cardano (ADA).
The proposed Grayscale Cardano Trust would be the first ETF based on ADA, the ninth-largest cryptocurrency by market cap, currently valued at over $25 billion.
The filing of the 19b-4 form by NYSE Arca on behalf of Grayscale introduces a potential new offering in the expanding market of crypto funds. According to the filing, Coinbase (NASDAQ:COIN) Custody Trust Company, LLC would serve as the custodian, while BNY Mellon (NYSE:BK) Asset Servicing would act as the administrator for the trust.
NYSE Arca highlighted the potential benefits of the proposed ETF in the filing, suggesting that it would "facilitate the listing and trading of an additional type of exchange-traded product" and "enhance competition among market participants, to the benefit of investors and the marketplace."
The 19b-4 form submission is part of a two-step process required to propose a spot crypto ETF to the SEC. With the filing now complete, the next phase will begin once the SEC acknowledges the proposal, which will then be published in the Federal Register and open the agency’s approval process.
The move comes amidst a flurry of crypto ETF proposals in recent weeks, featuring a variety of cryptocurrencies including Dogecoin, XRP, Litecoin, Solana, and even a memecoin associated with President Donald Trump. These proposals coincide with expectations of a more crypto-friendly stance from the SEC under the new administration.
Simultaneously, the SEC is also reviewing other crypto ETF-related proposals. Most recently, the agency acknowledged a proposal from Cboe BZX Exchange Inc. regarding in-kind redemptions and creations for the ARK 21Shares Bitcoin ETF and the 21Shares Core Ethereum ETF, and has requested public comments on the matter.
This follows the SEC’s previous approval of several spot bitcoin ETFs, which were based on a cash model for redemptions and creations.
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