What happened?
Grayscale Investments has filed S-1 registration forms with the SEC for spot Polkadot and Cardano exchange-traded funds (ETF). This move follows Grayscale’s established pattern of Delaware registrations preceding SEC submissions. The Cardano ETF would trade on NYSE Arca under ticker GADA, while specific exchange details for the Polkadot fund remain pending final approval.
Who does this affect?
This affects potential investors interested in the crypto market. Cryptocurrency enthusiasts keeping an eye on Grayscale’s aggressive expansion strategy would also be interested, as they’ve been working on converting five existing trusts into ETF structures. Further, the developments would impact Coinbase Custody Trust Company and The Bank of New York Mellon, which are respectively serving as custodian and handling transfer agent and administration duties for both trusts.
Why does this matter?
The proposed Grayscale ETFs may have significant market impact if approved. These filings signify a surge in market optimism regarding the approval of altcoin ETFs. Approval can trigger enhanced market activity, considering the looming October deadlines for a majority of applications. The 92 pending crypto ETF applications represent a 28% increase from 72 submissions recorded in April, indicating increasing institutional demand for crypto ETFs.