Following Grayscale's filing for the first spot ADA ETF in the United States, Cardano has shown a significant price increase.
Grayscale's ADA ETF Application
Major crypto asset manager Grayscale has filed to list a spot ADA ETF on the New York Stock Exchange. If approved, it would allow traditional investors to gain exposure to Cardano without directly owning the cryptocurrency.
Price Surge and Market Reaction
After the announcement, ADA's price surged by 11% to $0.80, though it remains 36% below its December high. Despite the absence of ADA futures on the Chicago Mercantile Exchange, the market remains optimistic, evidenced by the double-digit price increase.
Shift of Investor Focus to Layer 1 Coins
Investors are shifting away from memecoins to Layer 1 blockchain assets like Cardano, Bitcoin, and Ethereum. Discussions about Tier 1 coins now account for 44.2% of all crypto-related social media conversations, while mentions of memecoins decrease.
The ADA ETF application underlines the growing interest in Layer 1 coins and could provide a new level of institutional support for Cardano.
