Cardano has continued to gain a lot of institutional interest lately with various institutions filing for a Cardano spot ETF. The latest firm in the list is Grayscale, a digital asset manager. NYSE Arca, on behalf of Grayscale, filed for a Cardano Exchange Traded-Fund (ETF) with the SEC.
ADA has responded to the news pumping over 15% on the day. The recent spot ETF filing by Grayscale places ADA in a great position for further growth.
Grayscale’s Cardano Spot ETF Filing
Since the US gained a new government under the leadership of President Donald Trump, the ETF sector has experienced various ETF filings. So far, there are 60 ETF proposals awaiting the US SEC’s greenlight including XRP, Solana, and Litecoin ETF.
The 60th ETF and the most recent filing is the Grayscale Cardano spot ETF which was filed by NYSE Arca yesterday. Based on a post on X by Eric Balchunas, the Senior ETF Analyst at Bloomberg, NYSE filed the 19b-4 form proposing SEC to allow it to list and trade shares of the Grayscale Cardano Trust. These shares will use the ticker “GADA” according to the filing.
With the Trust sponsored by Grayscale Investments Sponsors, LLC and Grayscale Operating, LLC, it will only hold ADA. Each share will represent proportional ownership of the underlying assets and will be priced based on ADA’s value which is measured through the CoinDesk Cardano Price Index (ADX).
Grayscale’s Cardano Spot ETF filing is one of its kind in the US. According to IBC Group founder Mario Nawfal the recent move by Grayscale is aimed at “expanding its push into regulated crypto investments.”
The IBC founder further highlighted that “institutional interest in Cardano is heating up.” Grayscale’s ADA spot ETF filing comes just a week after Virtune AB introduced a Cardano ETP on Nasdaq Helsinki.
ADA Pumps by Over 15% After Grayscale’s ETF Filing
Cardano’s native token ADA has made big strides today. The price of Cardano has pumped by 15.1% following the recent ADA ETF filing with the US SEC. The coin is currently trading at $0.7985 as of the time of this writing.
ADA’s price moved from $0.6948 to $0.8156 earlier today before pulling back to the current price. The excellent price performance of ADA can be attributed to excitement resulting from the recent Grayscale ETF filing.
Cardano Spot ETF Has 62% Chance of Approval In 2025
The ADA spot ETF will provide institutional investors with an opportunity to invest in ADA in a manner that reduces exposure to price volatility risks. According to data on Polymarket, the Cardano ETF stands a 62% chance of getting approved by the end of 2024.
While the odds are lower than those of Litecoin(LTC) and Ripple (XRP), Cardano enthusiasts are still excited about the prospected approval. LTC and XRP have 80% and 81% chance of approval by the end of 2025, respectively.
With pro-crypto Mark T. Uyeda now serving as the Acting SEC Chair, the Cardano community remains positive for Grayscale’s ADA spot ETF acknowledgement. However, nothing is confirmed yet and the crypto community will have to wait to see what will unfold moving forward.
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