According to a press release by the Securities and Exchange Commission, Grayscale Investments filed for a Spot Cardano Exchange Traded Funds (ETF).
The SEC announced the filing on their official website, giving details on Grayscale Investments, who also own Bitcoin and Ethereum ETFs
The filing pushes Cardano into the same category of altcoins under consideration for the next ETF product.
Litecoin, Solana, and XRP have also appeared in the same category, with Bloomberg Analyst James Seyffart banking on Litecoin to get the nod before others.
Booming ETF Landscape
The ETF landscape is growing exponentially as the crypto industry positions itself for a pro-crypto administration under Trump.
One of the major driving forces behind the increased ETF filings at the SEC is the proposed appointment of Paul Atkins as the new SEC Chairman.
A pro-Crypto SEC is pivotal and has led to increased Asset managers filing for ETF products.
Another contributing factor is the success of the existing ETF products. Bitcoin ETFs alone hit $65 billion in assets last year.
Cardano, a top-10 cryptocurrency with a $19 billion Market Capitalization, is a worthy candidate for a suitable ETF product.
Are ETFs Helpful to Crypto Prices?
Exchange-traded funds have a solid impact on crypto prices due to the activity of institutional investors, which influences demand and liquidity.
When a crypto ETF gets approved, it brings about a surge of investment demand from institutional and retail investors who do not want to own crypto directly.
The ETF funds let this class of investors invest indirectly in crypto assets.
For instance, after Bitcoin spot ETFs launched in January last year, The 11 Bitcoin ETFs pulled in over $65 billion, with daily inflows sometimes hitting $1 billion.
This influx of Capital drives up the demand for Bitcoin, pushing its price. For example, by December 2024, Bitcoin has jumped from $42,000 to $108,000 following the launch of Bitcoin ETFs.
Ethereum ETFs haven’t performed well since their launch in July 2024. Experts attribute this to the steep learning curve of the Ethereum Network, which hinders would-be investors from committing to the project.
Asset managers like Blackrock, Fidelity, and Grayscale have Bitcoin and Ethereum ETFs with plans to diversify into other altcoins.
