Grayscale filed a request with the US Securities and Exchange Commission to list a Cardano Exchange-Traded Fund (ETF), on the New York Stock Exchange.
It would be the US’s first ETF linked to ADA. This ETF provides a regulated exposure of the digital asset.
ADA, the top-performing digital asset among the Top-10 in the last 24 hours, has outperformed both Bitcoin and Ethereum.
According to data from CryptoSlate, ADA’s price soared over 15 percent at the time of press. Its price has risen by over 15% since the beginning of January, when it was below $0.80.
ADA has fallen 74% from its record high price of $3.
Cardano ETF
Grayscale’s move signals a broader push to integrate ADA into mainstream investment products, aligning with the firm’s strategy of expanding its crypto-based ETF offerings.
If approved, the Cardano ETF would join Grayscale’s extensive portfolio of over 20 crypto investment products, including Bitcoin and Ethereum ETFs. Grayscale also has trusts that manage assets such as Avalanche Dogecoin and Solana with the intention of converting some to spot ETFs.
The filing states that the ETF is intended to increase market competition, and to offer investors a more direct access to ADA. This will eliminate the complexity of owning ADA directly.
In the meantime, regulatory uncertainty surrounds this application despite its immense potential. The SEC previously classified ADA as a security in lawsuits against Coinbase—a stance the Cardano community has strongly contested. The regulator could have significant difficulties approving the ETF if it maintains its classification.
Analysts have suggested that other cryptocurrencies such as XRP may not be able to compete with assets such as Litecoin in terms of ETF application. Regulatory transparency is a crucial factor to determine whether ADA will be included in SEC-approved cryptocurrency investment products.
Nonetheless, the Cardano Foundation pointed out that the application shows increasing institutional interest in the network’s blockchain infrastructure and evidence of its scalability, security, and decentralized design.
The statement is:
“Institutional interest in blockchain infrastructure is growing, and Cardano‘s focus on scalability, security, and decentralization stands out.”
Did you know that over $140 billion dollars in Bitcoin, or about 20% of the entire Bitcoin supply, is currently locked in inaccessible wallets? Or maybe you have lost access to your Bitcoin wallet? Don’t let those funds remain out of reach! AI Seed Phrase Finder is here to help you regain access effortlessly. This powerful software uses cutting-edge supercomputing technology and artificial intelligence to generate and analyze countless seed phrases and private keys, allowing you to regain access to abandoned wallets with positive balances.
