SEC Review of Grayscale’s Cardano ETF Application Approaches Deadline

SEC Review of Grayscale’s Cardano ETF Application Approaches Deadline

Grayscale Investments awaits a pivotal decision from the U.S. Securities and Exchange Commission on its Cardano ETF application, with the deadline set for May 29, 2025.

Grayscale Investments, a prominent digital asset manager, filed for a Cardano ETF, targeting traditional investors. The SEC, led by Gary Gensler, must now decide to approve or delay by May 29.

The approval could draw institutional interest, simplifying ADA investments via standard brokerage channels. Past ETF trends indicate a potential positive market reaction and strengthened institutional presence for Cardano.

Grayscale’s Cardano ETF aims to offer a regulated investment vehicle for ADA, potentially broadening its market. Should the SEC approve, the ETF will list on NYSE Arca, tracking ADA’s composite price index. As noted by an industry commentator, “The ETF would provide traditional investors with regulated exposure to ADA without directly holding the cryptocurrency, potentially broadening the investor base.”

Industry experts predict potential approval, with Grayscale boosting market confidence. Bloomberg analyst Eric Balchunas estimates a 75% approval probability, reflecting optimism seen in recent Bitcoin and Ethereum ETF success. Eric Balchunas, Senior ETF Analyst at Bloomberg, stated, “The Cardano ETF product has a 75% chance of approval sometime this year.”

Current forecasts and historical ETF approvals suggest a probable positive price impact if approved. This decision could shape the future of altcoin ETFs and institutional crypto engagement.