Grayscale Doubles Down on Crypto: Spot Cardano and Hedera ETFs Now in Play
Grayscale just fired the starting gun for the next crypto ETF arms race—and this time, it’s all about altcoins.
The asset manager’s latest SEC filings reveal plans for spot Cardano (ADA) and Hedera (HBAR) ETFs, signaling a bold pivot beyond Bitcoin and Ethereum. Wall Street’s favorite crypto custodian is betting big on smart contract platforms—while the rest of finance still struggles to define 'Web3' without consulting their Gen Z interns.
Why it matters: After converting its Bitcoin Trust to an ETF earlier this year, Grayscale’s move suggests institutional demand is trickling down to layer-1 alternatives. Never mind that most bankers still can’t explain proof-of-stake without Googling.
The cynical take: Nothing accelerates mainstream adoption like the scent of fresh management fees. Grayscale’s parent company Digital Currency Group reportedly earns more from custody than most protocols earn from actual usage.
Bottom line: The ETF machine won’t stop at Bitcoin. Whether that’s progress or financialization depends on which side of the trade you’re on.
Cardano and Hedera Trusts Mark Next Phase of Grayscale’s ETF Strategy
These new trusts are Grayscale’s first altcoin ETF registrations in Delaware for Cardano (ADA) and Hedera (HBAR). The firm has already registered investment trusts for other alternative cryptocurrencies, including Dogecoin, Filecoin, Avalanche and Bittensor.
The MOVE comes alongside the launch of two separate Grayscale trusts offering exposure to the native tokens of DeepBook and Walrus, projects that provide trading and data infrastructure on the Sui blockchain.
Industry analysts view these steps as part of a broader push by US asset managers to expand into altcoin-based ETFs, building on the commercial success of spot Bitcoin and ether funds.
That success has drawn increasing interest from institutional investors seeking regulated exposure to a wider range 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. Meanwhile, Hedera offers an alternative distributed ledger model, and it is designed for enterprise use cases. Therefore, ETF listings for these tokens could open new access points for investors. They WOULD appeal to those who prefer traditional market structures over direct token purchases.
The regulatory environment is now shifting in favor of such products. Recently, the SEC approved in-kind redemption mechanisms for spot bitcoin and Ether ETFs. As a result, this decision has encouraged more filings linked to other cryptocurrencies.
The SEC and the Commodity Futures Trading Commission are also working together on “Project Crypto.” This initiative aims to clarify how digital assets are classified under US law. As part of this effort, regulators are determining which tokens should be considered securities. Consequently, this addresses a long-standing uncertainty for potential issuers.
Last month, Grayscale also confidentially filed for a US initial public offering with the SEC, underscoring its ambitions to broaden its market presence.
If approved, spot Cardano and Hedera ETFs could boost liquidity and market engagement for both tokens, while providing institutional investors with new, regulated vehicles to gain exposure. The Delaware filings indicate Grayscale is laying the groundwork to bring these products to market once regulatory clearance is secured.
