In a notice dated February 24, the regulator confirmed that it has begun reviewing the proposal to list and trade the Grayscale Cardano Trust shares under NYSE Arca Rule 8.201-E. This marks the beginning of a formal evaluation process, during which the SEC will decide whether to approve or reject the ETF.
Following this acknowledgement, a 240-day review window will begin once the filing is published in the Federal Register, a step that typically occurs within a few days. This timeline sets the stage for a prolonged regulatory assessment before making any final decision.
The filing is the 60th ETF proposal this year
NYSE Arca initially submitted the proposal earlier this month via a 19b-4 form, making it the 60th crypto ETF filing of the year. The 19b-4 filing serves as a formal request for a rule change, but approval of an S-1 registration statement will also be required before trading can commence.
If approved, the Grayscale Cardano Trust would expose investors to Cardano (ADA) without requiring them to hold the asset directly. Instead, investors would purchase the trust’s shares, with its value tied to an index tracking ADA’s price across major exchanges such as Coinbase, Kraken, Crypto.com, and Bitfinex. Despite lacking U.S. licenses, Bitfinex was included in the index, as it met the necessary liquidity requirements.
For asset security, Coinbase Custody Trust Company would oversee the safekeeping of the fund’s assets, while BNY Mellon would serve as the transfer agent and administrator, ensuring smooth operational management.
The SEC is actively engaging with crypto-related ETF filings, having acknowledged several proposals in February. Notably, the commission has accepted Grayscale Investments’ updated application for a spot Solana ETF, indicating a shift in the regulator’s approach to crypto-focused investment products.
Also Read: Crypto. com SEC Probe Ends With No Action
The regulatory environment has changed since the filing
The SEC and Commodity Futures Trading Commission issued a joint interpretation in March 2026 outlining how federal securities laws apply to different categories of crypto assets and transactions.
The framework introduced clearer distinctions between digital commodities and crypto assets that may fall within securities regulation. That shift has reduced some of the uncertainty that surrounded altcoins during the SEC’s earlier enforcement campaign.
For Cardano, the change is particularly relevant because ADA had previously been identified by the SEC as an alleged crypto-asset security in its lawsuits against major exchanges. The agency’s approach has since become less enforcement-driven, with regulators moving toward clearer classifications and market-structure rules.
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