🚀Grayscale submits its first Cardano spot ETF, the 60th crypto ETF application this year is coming!
Grayscale recently submitted a Form 19b-4 application for a Cardano spot ETF to the U.S. Securities and Exchange Commission (SEC). This is not only its first attempt to introduce ADA (Cardano) to the U.S. spot ETF market, but also marks the number of cryptocurrency ETF applications this year has reached 60.
This move shows Grayscale's efforts to expand institutional investors' access to digital assets beyond Bitcoin and Ethereum. Bloomberg ETF analyst Eric Balchunas pointed out that this application highlights the intensity of asset management companies' scramble for approval in a changing regulatory environment.
According to Bloomberg ETF analysts James Seyffart and Balchunas, there is a 90% chance that the Litecoin ETF will be approved, while there is a 70% chance that the Solana ETF will be approved. Both companies have been approved under the 19b-4 Act. The final decision time for the Litecoin ETF and the Solana ETF is scheduled for October 2 and October 10, respectively.
Meanwhile, the analysis also predicts that the probability of approval for the Ripple ETF and the Dogecoin ETF is 65% and 75%, respectively. This is in stark contrast to the SEC under Gensler, when the SEC took a tough stance on cryptocurrencies. However, since Gensler's departure, regulatory sentiment seems to be changing.
It is worth noting that the 19b-4 application is a key step for ETFs to be listed on exchanges, as it is the first condition before the formal rule change. In addition, even if approved by the SEC, spot ETFs still need a valid S-1 registration statement before they can begin trading.
However, the market reacted positively to the news, and the price of ADA rose by more than 12% in 24 hours, reaching $0.80 as of February 11. Despite this, the price of ADA is still down nearly 67% from its all-time high in September 2021.
💬Finally, do you think the Cardano ETF application submitted by Grayscale this time will be successfully approved? See the comments section!
