Grayscale makes a significant step by filing for the first U.S. spot Cardano ETF, reflecting the rapid development of crypto in traditional finance.
Significance of the Spot Cardano ETF Filing
By filing for a spot Cardano ETF, Grayscale aims to bring ADA into the U.S. spot ETF market for the first time. The 19b-4 form serves as a formal request to the SEC for a rule change to list ADA on an exchange. However, even if this hurdle is cleared, an effective S-1 registration statement will still be necessary before trading can formally commence.
ADA Price Surge on ETF News
The market quickly reacted to the announcement. ADA surged nearly 14% within 24 hours, reaching $0.80 as of February 11. While this is a substantial rally, ADA remains 76% below its all-time high of $3.10 from September 2021. Still, the price movement signals strong investor optimism around the potential for altcoin ETFs to gain mainstream traction.
The Bigger Picture: Wave of Crypto ETF Filings
Grayscale's filing is part of a larger trend. Bloomberg ETF analyst Eric Balchunas noted that this is approximately the 60th crypto ETF filing this year alone, underscoring the fast pace at which asset managers are racing for regulatory approvals. This surge in applications comes amid shifting regulatory dynamics, particularly with the SEC's evolving stance on crypto ETFs.
Bloomberg analysts predict high chances for approval of other altcoin ETFs, potentially signifying further recognition of cryptocurrencies in traditional finance.
