Cardano Futures Milestone Paves Way for Faster SEC Review of ADA ETF
The Cardano community is eagerly awaiting August 9, as it marks the end of six months since CME launched regulated ADA futures. This milestone could pave the way for a faster review path for Grayscale's pending spot Cardano ETF application.
Grayscale has already filed for the Grayscale Cardano Trust ETF (GADA), which would hold ADA directly and track its market price. The six-month futures requirement is one of the key eligibility hurdles for a spot ETF, and meeting it removes this hurdle.
However, the SEC's generic listing standards also mention that a crypto asset must have traded on a regulated futures market for at least six months to qualify for a spot ETF. This does not guarantee an ETF will be approved on August 9 or any specific date thereafter.
The Grayscale filing highlights the risks linked to future regulatory changes, particularly the uncertainty surrounding ADA's classification as a security. The SEC previously named ADA in its 2023 lawsuits against Coinbase and Binance, which could affect how an ADA-based investment product operates.