Author: Stephen Katte, CoinTelegraph; Translated by: Baishui, Golden Finance

The U.S. Securities and Exchange Commission has recognized the listing and trading spot Cardano exchange trading proposed by New York Stock Exchange Arca on behalf of crypto asset management company Grayscale. Fund (ETF) proposal.

While this is only the first step towards approval, the SEC's endorsement of the Grayscale Cardano Trust on February 24 means that the agency will eventually approve or reject the "clock" of the proposed ETF will be soon start.

Before this, the new SEC leadership has recognized encrypted ETFs extensively, including Cboe’s XRP ETF, Grayscale’s spot XRP and Dogecoin ETFs, and Nasdaq’s iShares Bit with BlackRock Coin Trust (IBIT)-linked options for positions and exercise restrictions.

NYSE Arca, a subsidiary of the New York Stock Exchange Group, submitted a proposal to list and trade Grayscale on the stock exchange on February 10 for the first time. Shares of Cardano Trust.

The proposed ETF will track Cardano's prices through an index that surveys the prices of cryptocurrency exchanges such as Coinbase, Crypto.com, Bitfinex and Kraken every day.

These exchanges were selected as part of the index based on their “substantive compliance with the federal and state licensing requirements of the United States.”

Investors in ETFs do not directly hold Cardano, but hold shares in the trust.

The document states: "Investing in shares is not a direct investment in ADA; shares are intended to provide investors with a cost-effective and convenient way to obtain investment opportunities for ADA."

Coinbase Custody Trust Company is listed as the proposed custodian of the exchange-traded fund, while Bank of New York Mellon Asset Services is the transfer agent and administrator.

The proposed ETF will track Cardano's prices through an index that surveys the prices of cryptocurrency exchanges every day. Source: SEC

Bitfinex does not hold any license or registration in the United States, but is included because it meets the "minimum liquidity requirement".

Being friendly to cryptocurrencyAfter U.S. President Donald Trump took office, cryptocurrency-themed ETF applications have poured into the field in large numbers.

On February 24, the U.S. Stock Exchange Nasdaq seeks to list a ETF holding Hedera Network native token HBAR.

At the same time, on February 19 and 20, the U.S. Securities and Exchange Commission approved six exchange applications related to cryptocurrency ETFs in two days, including pledges, options, physical redemption and new types Altcoin funds.