In a twist for the crypto market, Cardano’s ADA surged by 14%—outperforming both Bitcoin and Ether—after Grayscale Investments applied for the inaugural spot ADA ETF in the United States, Coin Desk reports. This strategic move, aimed at bringing a fresh wave of institutional interest, has led the altcoin to 80 cents, even as it remains 36% below its December peak of approximately $1.37.
Grayscale has filed to list a new Cardano ETF on the New York Stock Exchange, marking its first standalone ADA product. Unlike its existing crypto trust offerings, this ETF is entirely separate. Investor demand for this altcoin remains strong, with the cryptocurrency—valued at $25 billion—climbing 1.5% to 71 cents following the news.
The proposed filing would list shares of the Grayscale Cardano Trust, with Coinbase Custody serving as custodian and BNY Mellon as administrator. This move, following recent Solana and XRP ETF applications, aims to enhance market competition and offer investors additional trading options.
Cardano’s Big Leap – Can a Spot ETF Sustain Its Rebound?
ADA climbed to around 80 cents before settling slightly lower, according to CoinDesk data. That’s a solid rebound for the ninth-largest cryptocurrency by market value, which remains down 36% from its December high near $1.37. Amid growing interest in crypto ETFs, its futures open interest surged 13% to $700 million, underscoring market optimism.
ADA futures open interest surged 13% to $700 million, underscoring market optimism.
Still, the move has many investors asking a key question: Can it keep up this outperformance if a spot ETF hits the New York Stock Exchange?
Bitcoin and ether may have paved the way—spot BTC and ETH ETFs began trading in the U.S. last year—but Cardano’s push highlights a growing demand for additional Layer 1 assets in regulated ETF form. What sets this movie apart is Grayscale’s strategic timing, coming amid heightened interest in alternative store-of-value assets and as traders rotate away from speculative meme coins toward more established cryptos.
The CME Factor—or Lack Thereof
One glaring hurdle stands out: unlike bitcoin and ether, ADA does not have futures listed on the Chicago Mercantile Exchange (CME). Historically, the U.S. Securities and Exchange Commission (SEC) has shown a preference for assets that feature robust surveillance and a regulated derivatives market. For BTC and ETH, CME futures served as the backbone for obtaining spot ETF approval. It doesn’t have that safety net—yet.
Still, its price rally suggests investors aren’t overly concerned. The market seems to believe that the mere prospect of an ADA spot ETF indicates institutional interest and potential long-term growth, overshadowing regulatory uncertainties tied to futures listings.
Spotlight on Layer 1: A Shift from Memecoins
Data from analytics firm Santiment shows that traders are rotating away from meme coins like Dogecoin, Shiba Inu, and Pepe in favor of established Layer 1 assets such as BTC, ETH, Solana, Toncoin, and Cardano. According to Santiment, these top Layer 1s now account for 44.2% of coin-specific discussions on social media.
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“The crypto community has largely shifted attention to Bitcoin and other Layer 1 assets like Ethereum, Solana, Toncoin, and Cardano,” Santiment said on X (formerly Twitter). “A shift in trader attention from meme coins to Bitcoin and Layer 1 assets is generally a sign of a more stable and sustainable market environment.”
This growing attention suggests it could benefit in the days ahead, especially if Grayscale’s application propels Cardano further into the institutional spotlight.
BTC in a Holding Pattern
Meanwhile, bitcoin has been stuck trading between $95,000 and $100,000—a range that’s been largely shaped by trade war fears and rising inflation expectations in the U.S. Ether, too, has remained locked between $2,500 and $2,900 since bouncing back from last week’s dip to $2,000.
Macro traders, meanwhile, have pivoted their focus to gold—pushing the precious metal to all-time highs above $2,900 per ounce. This shift underscores the evolving risk appetite within the broader investment community, as traditional assets reclaim attention in times of heightened market uncertainty.
Institutional Interest and the Gold Factor
Amid the growing buzz around crypto ETFs, popular analyst Crypto Rover predicts an imminent bullish cross-over of the 100-week moving average above the 200-week moving average. This technical signal is expected to trigger a mega altcoin rally, echoing the 500% surge witnessed in 2021 after the last such cross-over.
Against this backdrop, some analysts argue that Bitcoin’s enduring appeal as an alternative store of value is more evident than ever. Analysts at Bitfinex note:
“The recent decrease in volatility, coupled with the rising price of gold, should highlight Bitcoinʼs growing appeal as an alternative store of value. Despite short-term fluctuations, Bitcoinʼs fundamental narrative remains intact, with increasing institutional interest and its positioning as a potential hedge against inflation and currency devaluation continuing to support its long-term potential.”
Institutional Interest and the Gold Factor
They continued, emphasizing a paradigm shift:
“A shift [away from gold] may be underway. Over $196 billion worth of Bitcoin is now held by ETFs, public and private companies, and even nation-states. With central banks expanding money supply and fiat devaluation risks rising, Bitcoinʼs fixed-supply narrative is becoming increasingly attractive.”
This institutional interest reinforces the notion that Bitcoin and other major players maintain strong fundamentals that could drive their long-term growth even as ADA rallies on fresh optimism.
Conclusion:
While a spot ADA ETF still faces regulatory hurdles—namely, the absence of CME futures—Grayscale’s application marks another milestone in crypto’s march toward mainstream acceptance. Cardano’s recent price surge underscores rising optimism, even as the broader market grapples with uncertainty.
Whether it can sustain this momentum largely hinges on regulatory decisions and broader market sentiment. But one thing is clear: Cardano has entered the conversation alongside Bitcoin and ether—an accomplishment that should keep ADA firmly on every investor’s radar.
