Grayscale Investments has filed paperwork with the SEC for the first-ever spot Cardano (ADA) ETF in the United States, triggering a notable price surge for the cryptocurrency.
The digital asset management giant submitted a 19b-4 form through NYSE Arca, seeking approval to list shares of the Grayscale Cardano Trust. Following the announcement, ADA's price jumped over 11% in 24 hours, reaching $0.74.
The proposed ETF would allow investors to gain exposure to Cardano without directly holding the cryptocurrency. Coinbase, which currently serves as custodian for several Bitcoin and Ethereum ETFs, would act as the principal custodian for the Cardano trust.
This filing marks roughly the 60th crypto ETF application this year, according to Bloomberg ETF analyst Eric Balchunas, highlighting the growing institutional interest in digital assets beyond Bitcoin and Ethereum.
The market's positive reaction reflects increasing optimism around altcoin ETFs. Bloomberg analysts estimate high approval chances for other pending applications, including Litecoin (90%) and Solana (70%), with final decisions expected in October.
Despite the recent rally, ADA remains 76% below its all-time high of $3.10 recorded in September 2021. The cryptocurrency has experienced mixed performance in 2024, showing an 11% decline year-to-date.
Grayscale's move aligns with their broader strategy to expand institutional access to various cryptocurrencies, as they continue seeking approval to convert existing trusts into ETFs for assets including Litecoin, Dogecoin, and XRP.
The shifting regulatory landscape under new leadership appears more receptive to crypto investment vehicles, marking a departure from previous restrictive positions.