- Grayscale files for a spot Cardano ETF, aiming to impact ADA’s price.
- Bloomberg analysts for another altcoin estimate a 90% chance of Litecoin ETF approval, boosting chances for ADA ETF.
- Experts predict Cardano price could reach $3 with institutional adoption.
In the crypto sector, a major altcoin news has come forward; this time, it came from Grayscale Investments. As they have recently filed a proposal for a spot Cardano ETF with the US SEC through NYSE Arca.
This proposal aims under NYSE Arca Rule 8.201-E to give investors access to Grayscale’s Cardano Trust shares. If things roll out perfectly, it could have a significant impact on Cardano price.
Similarly, in the context of this positive altcoin news, a day before Bloomberg ETF analysts James Seyffart and Eric Balchunas had estimated that there is a 90% chance that the U.S. SEC will approve a spot Litecoin ETF by 2025.
This opinion backed overall market sentiment, as it would make LTC the first altcoin after ETH to get approval. Since it has similarities to BTC, as Litecoin also works on a proof-of-work mechanism, and the SEC could classify it as a commodity. If it’s approved, then it would likely benefit ADA ETF also.
As the first Bitcoin ETF AUM sponsor’s move came right after this opinion came forward, That is the reason Grayscale has quickly expanded its offerings, previously it filed applications for Solana ETF, XRP ETF, and now the Cardano ETF.
Keep reading to know the potential effects that could be manifested on Cardano price amid the evolving landscape of ETFs.
Can SEC Overlook Its Cautious Stance On Alt-ETFs Under Donald Trump’s Oversight?
As it is evident that the SEC has last approved Bitcoin and Ethereum ETFs back in 2024, but it remains cautious when it comes to altcoin-based ETFs. The primary concerns for the SEC revolve around the risks of market manipulation, liquidity issues, and compliance with securities laws.
This is why Grayscale’s latest filing for altcoin spot ETFs faces regulatory uncertainty, as historically, the SEC has only approved products for Bitcoin and Ethereum.
However, a more pro-crypto administration in the U.S. could change the SEC’s previous stance, especially after the repeal of SAB 121, which has already eased the path for many financial institutions.
Moreover, to address regulatory requirements, Grayscale’s ETF structure has been consistently improvised. As its structure includes specific features which are designed to enhance compliance.
For instance, that have Coinbase Custody which will securely store the Grayscale Cardano Trust’s ADA assets using its cold storage facilities. As this will greatly ensure the safety of the assets tied to Cardano price movements.
Similarly, the Delaware Trust Company also serves as the official trustee. Which will be providing institutional oversight for the investment.
Also, the price valuation for the ETF will majorly rely on significant exchange data from platforms like Coinbase and Kraken. As that will strictly ensure that it aligns with traditional market standards.
Charles Hoskinson Verified The Filing News
The proposed ETF has sparked a significant conversation within the Cardano community. Also, Charles Hoskinson, the founder of Cardano, welcomed the news. He views it as a proof to the platform’s durability and its appeal to institutional investors.
He even stressed that the unique combination of proof-of-stake technology and advanced smart contracts positions Cardano as a prime candidate for increased financial adoption. This innovative approach not only enhances the platform’s capabilities but also attracts institutional interest.
Moreover, Input-Output Global (IOG), the development company behind Cardano, has also recognized the significance of the newly filed Cardano ETF.
As the company stated that institutional recognition of the ETF would accelerate adoption and development across the ecosystem. Which will ultimately benefit projects that are built on the Cardano blockchain.
Also, he reveals that Microsoft may partner with the Cardano ecosystem soon, just a day after Grayscale filed the ADA ETF.
Cardano Price Bounced From High Volume Profile Level: Is $3 Next?
The Grayscale Cardano ETF filing caused a surge in Cardano price, reaching $0.80 with a 12% increase, which when writing was at $0.77. This surge was witnessed from a key support block that has been active since Q4 2024, at a high volume profile level.
Moreover, if it is approved, then an approved Cardano ETF appears likely to transform Cardano’s market position through volatility in its cryptocurrency ranking.
With this floating altcoin news, with LTC ETF, and altcoin gaining 90% approval odds, experts say that ADA also has a higher chance now.
Similarly, Experts also say that Cardano price could soar to as much as $3 when institutions begin adopting post-approval.
Additionally, the SEC should spend up to 45 days answering the filing and may continue the assessment beyond this limit.
Since, approval remains uncertain, but industry experts predict that growing favorable regulatory policies within the new administration will boost the prospects for approval. If Grayscale approves its proposed Cardano ETF, it will define a new era in ADA and all the altcoin markets.
Disclaimer
In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
