What happened?
Greyscale has submitted an S-1 registration to the SEC for an Exchange Traded Fund (ETF) revolving around the digital asset Cardano ($ADA). This submission follows a 19b-4 filing from February, providing further details on how the altcoin ETF would operate. The document acts as a crucial registration statement, establishing details of the Grayscale Cardano Trust ETF (GADA) for investors.
Who does this affect?
This primarily affects those interested in cryptocurrency investments, especially those eyeing Cardano ($ADA). Investors who are hoping for more regulated exposure to Cardano will be specifically impacted. If approved, the ETF could spur a significant rise in demand for Cardano, potentially igniting a substantial rally.
Why does this matter?
The potential approval of the Cardano ETF by the SEC has serious market implications. An approval would suggest integration with the U.S. capital markets which could potentially cause a major upswing in demand for Cardano. Market speculators are pricing in 87% odds for approval by 2025, an optimistic figure that has climbed by 11% over the past week. This confidence, if matched by approval, could have a significant impact on Cardano’s price and market position.