Renowned American-based asset manager and exchange-funded trust (ETF) issuer Grayscale has taken a step towards establishing an ETF for the ninth largest cryptocurrency, Cardano (ADA). It has filed a 19b-4 application proposing to list and trade the Grayscale Cardano Trust shares under NYSE Arca Rule 8.201-E.
Following the filing announcement, Cardano’s ADA soared by over 14% from $0.69 – $0.81. Its market capitalization also increased by 14.7% to reach $28.4 billion as investors turned their attention to the crypto, adding large units to their bags.
Altcoin ETFs Knock
Following the resignation of the former U.S. Securities and Exchange Commission (SEC) chairman, many asset managers and issuers have submitted applications for many high-capitalization altcoins and memecoins. These include filings for spot Solana (SOL) ETF, spot Dogecoin (DOGE) ETF, spot Litecoin (LTC) ETF, and others.
Just as in the case of the already-trading BTC and Ether ETFs, if approved, investors can indirectly invest in the tokens by purchasing funds that mirror the value of the crypto. At the same time, the asset managers hold a large chunk of the corresponding coin.
After considering several factors, Bloomberg professional ETF analysts Eric Balchunas and James Seyffart have noted that Litecoin and Solana ETFs have a higher chance of gaining approval from the SEC earlier than the other altcoins on the waiting list.
Our official alt coin ETF approval odds are out. Litecoin leads w 90% chance, then Doge, followed by Solana and XRP. We are only doing for 33 Act $IBIT-esque filings. But def poss to see futures or Cayman-subsidiary type 40 Act stuff get through as well. https://t.co/JSaNnifjbu
— Eric Balchunas (@EricBalchunas) February 10, 2025
SEC to Amend Ark 21shares ETFs
In a recent filing, the U.S. SEC received an application to allow in-kind creations and redemptions to the ARK 21Shares Bitcoin ETF and the 21Shares Core Ethereum ETF. Following the amendment, investors can swap the ETFs for either cash or the corresponding cryptocurrency.
Meanwhile, investors have poured over $3 billion into ARKB and approximately $17 million into CETH.
