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Delaware Trust filings hint at GrayScale's covert preparations for potential Exchange-Traded Funds (ETFs) involving Cardano's $ADA and Hedera Hashgraph's $HBAR.

Delaware has recorded statutory trusts for Grayscale involving Cardano and Hedera, typically a sign that an Exchange Traded Fund (ETF) filing might follow.

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Delaware Trust filings hint at Grayscale's stealthy preparation for potential Exchange-Traded Funds...
Delaware Trust filings hint at Grayscale's stealthy preparation for potential Exchange-Traded Funds (ETFs) involving Cardano ($ADA) and Hedera Hashgraph ($HBAR)

Delaware Trust filings hint at GrayScale's covert preparations for potential Exchange-Traded Funds (ETFs) involving Cardano's $ADA and Hedera Hashgraph's $HBAR.

The financial world is abuzz with the latest development in the crypto space, as Grayscale Investments has registered two new statutory trusts - the Grayscale Cardano Trust ETF and the Grayscale Hedera Trust ETF - in Delaware. These trusts mark the early stages of the United States Securities and Exchange Commission (SEC) approval process for potential altcoin Exchange-Traded Funds (ETFs) based on Cardano (ADA) and Hedera Hashgraph (HBAR).

Regulatory Gears in Motion

The SEC typically has 240 days from acknowledging a 19b-4 filing to approve or deny. Given the existing acknowledgments for Cardano and Hedera, the clock is already ticking. The SEC has passed the in-kind redemption for spot Bitcoin and Ether ETFs in July 2021, making these products more operationally convenient among market makers and big investors.

Both trusts are listed as general statutory trusts with CSC Delaware Trust Company serving as the registered agent in Wilmington. The SEC has acknowledged earlier filings related to these assets, such as NYSE Arca’s 19b-4 form for the spot Cardano ETF and Nasdaq’s form for the Hedera ETF, marking the start of regulatory review.

Market Optimism and Anticipated Timeline

Market observers and prediction markets currently show strong confidence in an upcoming approval for Cardano’s spot ETF, with approval odds around 75-83% expected between August and October 2021. The SEC review window for Grayscale’s ADA ETF is reported to be within 180 days with a decision anticipated in August 2021, making this a focal point for investors.

However, the SEC has pushed crypto ETF decisions again, with decisions on Truth Social and Grayscale rulings still pending. This could potentially delay the approval process for the Cardano and Hedera ETFs.

What's Next?

| ETF | Status | Next Steps & Timeline | |---------------------------|-------------------------------------------------------|--------------------------------------------| | Grayscale Cardano Trust ETF| Delaware trust registered (Aug 12, 2021); SEC review ongoing; formal S-1 filing pending | SEC decision expected around late Aug to Oct 2021; strong market optimism for approval| | Grayscale Hedera Trust ETF | Delaware trust registered (Aug 12, 2021); early SEC regulatory review stage | Further SEC filings needed; no specific decision timeline public yet |

Grayscale’s strategy appears focused on having the trusts ready to quickly proceed with regulatory filings and potential launches once the SEC exhibits more approval readiness for altcoin-based ETFs.

Bullish Signals and Institutional Accumulation

Traders on social media have flagged the Delaware filings for Cardano and Hedera trusts as a bullish signal. Some analysts expect institutional accumulation ahead of any official approval, similar to the pre-launch activity seen in Bitcoin and Ether markets earlier this year.

Project Crypto and Regulatory Uncertainty

The SEC and Commodity Futures Trading Commission are developing Project Crypto, an undertaking to identify tokens that can be considered securities. This could help reduce regulatory uncertainty and potentially accelerate approvals for funds tracking established altcoins like ADA and HBAR.

In conclusion, the registration of the Grayscale Cardano Trust ETF and Grayscale Hedera Trust ETF in Delaware marks an important step in the potential launch of altcoin-based ETFs. As the SEC review process unfolds, investors and market participants will be closely watching for any updates and decisions regarding these ETFs.

  1. Given the SEC's 240-day approval timeframe, the clock is ticking for the Grayscale Cardano Trust ETF and Grayscale Hedera Trust ETF, which have been registered in Delaware.
  2. The SEC has already acknowledged earlier filings related to these assets, such as NYSE Arca’s 19b-4 form for the spot Cardano ETF and Nasdaq’s form for the Hedera ETF.
  3. Market observers and prediction markets show strong confidence in an upcoming approval for Cardano’s spot ETF, with odds around 75-83% expected between August and October 2021.
  4. Trading activity on social media has identified the Delaware filings for Cardano and Hedera trusts as a bullish signal, with some analysts anticipating institutional accumulation ahead of any official approval.
  5. The SEC and Commodity Futures Trading Commission are working on Project Crypto, an initiative aimed at identifying tokens that can be considered securities, which could help reduce regulatory uncertainty and potentially expedite approvals for altcoin-based ETFs.
  6. With the SEC review process ongoing, investors and market participants are closely watching for updates and decisions regarding these ETFs, reflecting a growing interest in crypto finance and investing.
  7. The registration of these trusts represents the early stages of the US SEC's approval process for potential altcoin Exchange-Traded Funds (ETFs) based on Cardano (ADA) and Hedera Hashgraph (HBAR).
  8. Grayscale’s strategy appears to be focused on having the trusts ready to file regulatory documents and potentially launch once the SEC demonstrates more readiness for altcoin-based ETFs, reinforcing the importance of liquidity, exchanges, and market makers in crypto token trading.

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