On February 10, 2025, NYSE Arca, Inc. submitted a proposal to the Securities and Exchange Commission to list and trade shares of the Grayscale Cardano Trust (ADA) under the exchange's commodity-based trust regulations. This proposal, updated by a second amendment on February 20, 2025, outlines the purpose and operation of the trust, emphasizing the roles of entities like Grayscale Investments and Coinbase Custody. The Cardano Trust functions by holding Cardano (ADA) digital assets and is designed as a cost-effective way for investors to gain exposure to ADA without holding the asset directly. The proposal includes details on the Cardano network, the trust's operation, rules for creating and redeeming trust shares, and the security protocols for storing digital asset keys.
Simple Explanation
Imagine a new toy that lets you pretend to have and play with a special kind of shiny coin called Cardano, but instead of holding the coin, you just play with a tiny picture of it. A group is asking for permission to let people play with these toy coins in a fun and safe way, using special rules to make sure everything goes smoothly.