Grayscale Files for Spot Cardano ETF, Boosting ADA by 11%
February 11, 2025
In a significant development for the cryptocurrency market, Grayscale has officially filed a 19b-4 form with the Securities and Exchange Commission (SEC) seeking approval for a spot Cardano (ADA) Exchange-Traded Fund (ETF). This marks the first attempt to introduce Cardano into the U.S. spot ETF landscape, a move that has garnered considerable attention from investors.
Grayscale’s Ambitious Step
Grayscale’s latest filing is part of the company’s broader strategy to enhance institutional access to a range of digital assets beyond its well-known Bitcoin (BTC) and Ethereum (ETH) products. The filing reflects a growing trend in the market, as Grayscale aims to diversify its offerings amid increasing interest from investment managers and institutional players.
According to Bloomberg ETF analyst Eric Balchunas, this latest application is noteworthy as it represents the 60th crypto ETF filing submitted to the SEC just this year. The rapid increase in such filings underscores the urgency with which asset managers are seeking regulatory approvals in a continually evolving market environment.
Understanding the 19b-4 Filing
The 19b-4 filing is a crucial step in the process of launching a new ETF, serving as a formal request for a rule change necessary for listing on an exchange. It is also essential to note that, even with SEC approval of the ETF, an effective S-1 registration statement is required before trading can commence.
Market Reaction and ADA Surge
Following the announcement of the Cardano ETF filing, the price of ADA surged by nearly 11% within a 24-hour period, reaching approximately $0.74. Despite this uptick, Cardano’s value still remains substantially lower—76%—than its all-time high of $3.10, which was achieved in September 2021.
This price movement signals a growing optimism in the market surrounding altcoin ETFs, suggesting that investors are increasingly optimistic about the potential approval of similar financial products in the near future.
Future Prospects for Other Cryptocurrencies
In their analysis, Bloomberg’s ETF analysts James Seyffart and Balchunas highlighted that there is growing anticipation for further spot ETF approvals for other cryptocurrencies. Currently, they estimate a 90% chance of approval for a Litecoin (LTC) ETF and a 70% chance for Solana (SOL), both of which have pending 19b-4 approvals. Significant decisions on these ETFs are expected, with the SEC’s final rulings scheduled for October 2 and October 25, 2025, respectively.
Moreover, Seyffart and Balchunas assign a 65% and 70% approval probability for Ripple (XRP) and Dogecoin (DOGE) ETFs, respectively. This outlook marks a notable shift in regulatory sentiment, particularly following the departure of former SEC Chair Gary Gensler, who maintained a stringent stance on cryptocurrency regulations.
Conclusion
As the cryptocurrency landscape evolves, the filing for a Cardano ETF not only demonstrates Grayscale’s strategic expansion but also highlights a potential shift in the regulatory climate. Investors and market participants are closely monitoring these developments, as they could pave the way for broader acceptance and integration of cryptocurrencies within traditional financial markets.
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