Cardano’s ADA token surged 11%, outpacing Bitcoin (BTC) and Ethereum (ETH) following Grayscale Investments’ filing for the first spot ADA exchange-traded fund (ETF) in the United States.
Grayscale’s ADA ETF Filing Puts Cardano Ahead of Bitcoin and Ethereum
ADA has begun its rally, climbing to $0.80. However, despite the recent surge, the ninth-largest cryptocurrency by market cap remains 36% below its December high of around $1.37.
Grayscale, a major crypto asset manager, has filed to list a spot ADA ETF on the New York Stock Exchange (NYSE). If approved, this would allow traditional investors to gain exposure to Cardano without directly owning the cryptocurrency.
Spot Bitcoin and Ethereum ETFs have already achieved tremendous success in the U.S., attracting billions in investor funds and accelerating institutional adoption.
However, a key distinction for ADA’s approval is the absence of ADA futures trading on the Chicago Mercantile Exchange (CME) – a factor that played a crucial role in the SEC’s approval of spot BTC and ETH ETFs.
The U.S. Securities and Exchange Commission (SEC) based its spot BTC and ETH ETF approvals on CME’s futures surveillance system, which is seen as a safeguard against price manipulation. Without ADA futures listed on CME, the approval process could face additional scrutiny.
Despite this, the market remains optimistic, as evidenced by ADA’s double-digit price increase following Grayscale’s announcement.
Investors’ Focus Shifts to Layer 1 Coins
Beyond ADA, the crypto market has seen a broader shift in investor sentiment away from memecoins and toward Layer 1 blockchain assets like Bitcoin, Ethereum, Solana (SOL), Toncoin (TON), and Cardano.
According to blockchain analytics firm Santiment, discussions about Tier 1 coins now account for 44.2% of all crypto-related social media conversations, while mentions of memecoins like Dogecoin (DOGE), Shiba Inu (SHIB), and Pepe (PEPE) have decreased.
*This is not investment advice.
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