Where the market turns dark red, and Cardano (ADA) is also hit hard, there is still some positive news. The chance of a Cardano Spot Exchange-Traded Fund (ETF) has come a step closer now that the American Securities and Exchange Commission (SEC) has officially recognized the application.
Cardano makes jump in the ETF race
For a long time, Ada seemed to be offside in the ETF race. But on 10 February the New York Stock Exchange (NYSE) Arca changed this by submitting a 19B-4 application to the SEC.
This new investment option opens the doors for institutional investors to board the digital currency. The hope is that, just like with the Bitcoin (BTC) funds, a cardano ETF can cause gigantic inflow. It offers a regulated way to get exposure to the currency, without having to manage it yourself.
Now that the application has been recognized, the 21 day public comment period starts. This means that market participants and stakeholders get the chance to give their opinion.
This phase runs until mid -March, after which the SEC will further assess the application. Ultimately, the SEC has a maximum of 240 days to make a decision. The fund may only be noted if green light has been given for the 1B-4 application and the S-1 registration form, which still has to be submitted.
Just a matter of time
A year ago it looked very different. At that time, many investors considered the chance of Altcoin ETFs small, partly due to the strict attitude of the SEC under Gary Gensler. For example, Cardano and Solana (SOL) were labeled as effects and the launch of an XRP ETF was also hindered for a long time by legal proceedings against Ripple.
Yet the opportunities now seem to turn. In addition to the application for the Grayscale Cardano ETF, the SEC has now also recognized requests for XRP, Dogecoin (Doge), Solana and Litecoin ETFS. HBar is also in the race, but that application still has to be recognized
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Source: https://newsbit.nl/cardano-etf-een-stapje-dichterbij-sec-erkent-aanvraag-van-grayscale/
