Grayscale has filed for new trust entities for Cardano and Hedera, a move that often precedes a formal application with the Securities and Exchange Commission (SEC). The filings indicate the firm is preparing to launch spot exchange-traded funds for the two cryptocurrencies, following its successful Bitcoin and Ethereum ETFs.
The registration of two new statutory trusts in Delaware by Grayscale Investments for Cardano and Hedera suggests that the company may be preparing to introduce spot exchange-traded funds for both assets.
The Grayscale Cardano Trust ETF and the Grayscale Hedera Trust ETF, considered general statutory trusts, are identified in the filings dated Aug. 12.
The registrations are on Delaware’s official corporate records portal and adhere to a pattern that the asset manager has previously employed in anticipation of ETF launches. Similar filings have frequently preceded S-1 submissions to the US Securities and Exchange Commission (SEC), a prerequisite for a fund to commence trading.
NYSE Arca’s 19b-4 form for Grayscale’s proposed spot Cardano ETF and Nasdaq’s form for a Hedera ETF were confirmed by the SEC earlier this year. Those acknowledgments initiated the initial phase of the regulatory review procedure.
Cardano and Hedera Trusts Mark Next Phase of Grayscale’s ETF Strategy
These new trusts are Grayscale’s initial altcoin ETF registrations in Delaware for Hedera (HBAR) and Cardano (ADA). Dogecoin, Filecoin, Avalanche, and Bittensor are among the alternative cryptocurrencies for which the organization has already registered investment trusts.
The action coincides with establishing two distinct Grayscale trusts that provide exposure to the native tokens of DeepBook and Walrus. These projects offer trading and data infrastructure on the Sui blockchain.
Industry analysts perceive these actions as part of a more extensive initiative by US asset managers to expand into altcoin-based ETFs, which is intended to capitalize on the commercial success of spot Bitcoin and ether funds.
This accomplishment piqued the interest of institutional investors pursuing regulated exposure to a broader array of digital assets.
Regulatory Tailwinds Strengthen Case for Altcoin ETFs
Cardano is known for its research-driven approach to blockchain development. It also focuses heavily on scalability. In the interim, Hedera provides an alternative distributed ledger model tailored explicitly for enterprise applications. Including these tokens in exchange-traded funds (ETFs) could give investors additional entry points. They would appeal to individuals who favor traditional market structures over direct token purchases.
The regulatory environment is now shifting in favor of such products. In-kind redemption mechanisms for spot Bitcoin and Ether ETFs were recently approved by the SEC. Consequently, this decision has prompted an increase in filings associated with other cryptocurrencies.
The SEC and the Commodity Futures Trading Commission also work together on “Project Crypto.” This initiative aims to elucidate the classification of digital assets under US law. Regulators are currently determining which tokens should be classified as securities as part of this endeavor. As a result, this resolves an ongoing ambiguity for prospective issuers.
Grayscale also confidentially applied to a US initial public offering with the Securities and Exchange Commission (SEC) last month, underscoring its aspirations to expand its market presence.
Spot Cardano and Hedera ETFs could enhance liquidity and market engagement for both tokens, offering institutional investors new, regulated vehicles to obtain exposure, if approved. Grayscale is establishing the foundation to introduce these products to the market upon receiving regulatory approval, as evidenced by the Delaware filings.
