On Feb. 10, 2025, leading crypto asset manager Grayscale officially filed for a Cardano (ADA) exchange-traded fund (ETF) with the New York Stock Exchange (NYSE). This marks the first-ever standalone ADA ETF filing in the United States, expanding Grayscale’s push into regulated crypto investment vehicles.
Institutional Demand for ADA Heats Up
Unlike Grayscale’s ongoing conversions of its XRP and Solana (SOL) trusts into ETFs, the Cardano ETF would be an entirely new product. According to the 19b-4 filing, the fund will hold only ADA, with each share representing a proportional interest in its holdings.
- Coinbase Custody will serve as the fund’s custodian
- BNY Mellon Asset Servicing will act as the administrator
The move aligns with growing institutional interest in Cardano, as noted by IBC Group founder Mario Nawfal, following the recent Cardano ETP launch on Nasdaq Helsinki by Virtune AB.
Market Impact and ADA Price Surge
Following the ETF announcement, ADA surged 14% in a matter of hours, hitting an intraday high of $0.80. However, the token remains down 17% over the past two weeks, as broader altcoin markets have faced volatility.
Despite short-term dips, analysts remain bullish on ADA, with the token rising 140% over the past six months. If the SEC approves a spot ADA ETF, it could further solidify Cardano’s position as a major institutional asset.
The Expanding Crypto ETF Market
Grayscale’s filing follows a wave of altcoin ETF applications submitted since President Donald Trump’s inauguration, including proposals for XRP, Solana (SOL), and Litecoin (LTC) from:
- Canary Capital
- WisdomTree
- 21Shares
- Bitwise
- VanEck
Meanwhile, Bitcoin ETFs in the U.S. have seen mixed investor sentiment, with $578 million in inflows and $561 million in outflows so far in February. Spot Ethereum ETFs have performed better, with mostly positive flows throughout the month.
What’s Next for the Cardano ETF?
With institutional demand rising, all eyes are on the SEC to determine whether Grayscale’s Cardano ETF will receive approval. If successful, this could further legitimize ADA as an investable asset and drive long-term price appreciation.
Will the SEC continue its shift toward broader crypto ETF approvals? Investors eagerly await the outcome.
