Grayscale Investments has registered two statutory trusts in Delaware for Cardano (ADA) and Hedera (HBAR), indicating preparations for spot exchange-traded funds tied to both assets. The filings, dated Aug. 12, list the entities as the Grayscale Cardano Trust ETF and the Grayscale Hedera Trust ETF. Both are organized as general statutory trusts, with CSC Delaware Trust Company as the registered agent in Wilmington.
When Grayscale forms a Delaware trust, it creates a legal entity to hold the assets if the SEC approves the ETF. The trust formation does not authorize trading. After this step, issuers usually file an S-1 registration statement and a 19b-4 rule change proposal. The U.S. Securities and Exchange Commission (SEC) must approve both of the filings before trading can start.
Earlier this year, the SEC acknowledged NYSE Arca’s 19b-4 filing for Grayscale’s Cardano ETF and Nasdaq’s 19b-4 filing for a Hedera ETF. These acknowledgments began the formal review process for both products.
Grayscale’s Delaware Trust Filings Lay Legal Groundwork for New Crypto Funds
The Cardano and Hedera trusts are Grayscale’s first Delaware-registered altcoin ETF vehicles for these networks. The company has previously created similar trusts for Dogecoin, Filecoin, Avalanche, and Bittensor.
Alongside these registrations, Grayscale recently launched two separate trusts offering exposure to DeepBook and Walrus. These projects provide trading and data infrastructure on the Sui blockchain. ETF listings for these assets would allow investors to gain exposure through regulated securities markets instead of purchasing the tokens directly.
The regulatory backdrop has shifted in recent months. The SEC approved in-kind redemption mechanisms for spot Bitcoin and Ether ETFs, enabling authorized participants to exchange ETF shares for the underlying assets directly. This decision has prompted more ETF filings for other cryptocurrencies.
Delaware Registration Is a “Door-Opener,” Not Approval
Registering a trust in Delaware is considered a “door-opener” for the ETF process because it creates the legal structure required to hold the asset. However, it does not influence the SEC’s final decision on approval.
Specifically, the SEC’s review focuses on market surveillance, fraud-prevention measures, custody arrangements, valuation transparency, and investor protection. In addition, applicants must demonstrate that the underlying market has sufficient oversight and liquidity to support the ETF.
Notably, Grayscale’s other ETF filings remain pending. The SEC has already delayed decisions on its Dogecoin, Solana, and XRP proposals.
