Cardano’s ADA surged 14% after Grayscale Investments filed for the first U.S. ADA spot ETF. The altcoin reached 80 cents, yet remains 36% below its December peak.
Grayscale’s Groundbreaking Move
Grayscale has filed to list a new Cardano ETF on the New York Stock Exchange, marking its first standalone ADA product. This filing aims to enhance market competition and provide investors with additional trading options.
Cardano’s Big Leap: Will It Sustain?
ADA climbed to 80 cents, a notable rebound for the ninth-largest cryptocurrency by market value. However, investors are questioning if this surge can maintain its momentum if a spot ETF hits the exchange. Interest is shifting to assets with stronger foundations as market conditions evolve.
The CME Factor: ADA's Challenge
Unlike Bitcoin and Ether, ADA lacks futures on the Chicago Mercantile Exchange (CME). The SEC typically favors assets with robust derivatives markets, posing a challenge for ADA in obtaining ETF approval.
Although ADA faces regulatory hurdles with CME futures absent, Grayscale’s ETF application is a step towards mainstream acceptance of crypto assets. Approval could spark increased investor interest in Cardano.
