As Cryptocurrency Exchange Traded Funds (ETFs) solidify their position in the broader market, market players await new rollouts.
Following the successful integration of Bitcoin—and Ethereum-based ETFs in 2024, community members have heightened their anticipation for a Cardano-based ETF poised to strengthen ADA’s price.
A new development from the U.S. Securities and Exchange Commission fuels this bullish outlook. The regulatory body has officially recognized a Cardano-based Exchange-Traded Fund (ETF) filled by leading investment firm Grayscale.
The SEC’s acknowledgment of Grayscale’s ETF puts its application ahead of competitors and further demonstrates the regulator’s interest in accommodating altcoin-based ETFs.
Notably, the American digital asset management firm Grayscale, with $50 billion worth of assets under management, has advocated for digital asset-based ETPs.
ETFs are especially useful for traditional investors seeking to expand their portfolios without wanting to enter the volatile cryptocurrency space directly. Over the years, key figures in the conventional finance space have increased their cryptocurrency holdings through ETFs.
After successfully launching a Bitcoin Spot ETF in January 2024, the investment firm has continued to expand its reach. Alongside its Cardano ETF filing, Grayscale has launched several altcoin-based ETFs, centering on altcoins like Dogecoin and Polkadot.
Like Bitcoin (BTC) and Ethereum (ETH), Cardano’s ADA could greatly benefit from the long-term integration of a Cardano-based ETF.
Notably, BTC recorded a massive jump in its price value following the inception of several new Bitcoin-based ETFs in the first quarter of the previous year.
At report time, Cardano (ADA) faces renewed selling pressure as the global cryptocurrency market bleeds. The asset moved from $0.82 to $0.73 to consolidate at $0.63. At press time, ADA trades at $0.65.
