Grayscale Investments, a US-based asset management company, is working to create two new exchange-traded funds (ETFs) for the cryptocurrencies Cardano (ADA) and Polkadot (DOT). The ETFs would let people invest in ADA and DOT without needing to buy or store the cryptocurrencies.
The firm filed with the U.S. Securities and Exchange Commission (SEC) on Friday to get approval for the ETFs. As per the filing details, the Cardano ETF will be listed on the NYSE Arca stock exchange with the ticker symbol GADA. It will follow the CoinDesk Cardano Price Index. The Polkadot ETF will also work similarly. It will also be listed on Nasdaq with the ticker DOT, and track the CoinDesk DOT CCIXber Reference Rate.
Coinbase will act as custodian for both ETFs. Both are designed to be simple, and will hold only the actual cryptocurrencies and be managed passively.
SEC’s ETF Review Process Faces Delays and Inconsistencies
These initiatives are indicative of Grayscale aiming to provide additional investment options beyond popular cryptocurrencies like Bitcoin and Ethereum.
Other companies, like VanEck and Bitwise, are also trying to launch similar altcoin ETFs. On August 23, New York-based VanEck filed its first JitoSOL Liquid Staking ETF with the SEC. The goal of this ETF is to provide investors with a new way to access Solana’s liquid staking market without needing to hold the tokens directly.
Similarly, on August 26, the San Francisco-based Bitwise submitted its SEC filing for its first-ever Chainlink ETF. If approved, this would be the first U.S. ETF focused on the decentralized oracle network, which connects blockchains with external data.
