SEC accepts grayscale Cardano spot ETF application

According to Cointelegraph, the US Securities and Exchange Commission (SEC) has accepted a proposal submitted by Grayscale, a representative of NYSE Arca, a fully electronic exchange under the New York Stock Exchange, to apply for listing and trading of Cardano spot exchange traded funds (ETFs).

Although this is only the first step in the approval process, the SEC's acceptance of the proposal from Grayscale Cardano Trust on February 24th means that the approval process will officially begin, and the agency will need to decide whether to approve or reject the application within the statutory deadline.

This Cardano ETF tracks the price of Cardano's native token ADA through an index that collects daily data from exchanges such as Coinbase, Crypto.com, Bitfinex, and Kraken. ETF investors do not directly hold ADA, but rather hold shares in the trust fund.

The application document states: "Investment in the shares is not equivalent to direct investment in ADA: the shares are intended to provide investors with a cost-effective and convenient way to obtain investment exposure to ADA

Coinbase Custody Trust Company Designated as the custodian of the ETF, BNY Mellon Asset Serving serves as the transfer agent and manager.

At the same time, Nasdaq has submitted the 19b-4 filing for the Hedera spot ETF to the SEC on behalf of digital asset investment firm Canary Capital, aiming to apply for the listing of a fund that provides exposure to Hedera's native token HBAR.

The SEC has recently accepted multiple new cryptocurrency ETF applications, including funds based on XRP, Dogecoin (DOGE), and Solana. In addition, the Litecoin spot ETF applied for by Canary Capital has been added to the ETF list on the US Securities Depository and Clearing Corporation (DTCC) website, which may make Litecoin (LTC) the third currency after Bitcoin (BTC) and Ethereum (ETH) to serve as the underlying asset for US cryptocurrency spot ETFs.