The U.S. Securities and Exchange Commission (SEC) has officially begun reviewing Grayscale’s proposal for a Cardano (ADA) exchange-traded fund (ETF). A final decision is expected by August 2025, potentially making ADA one of the next major cryptocurrencies to receive ETF approval.
What a Cardano ETF Means for Investors
- If approved, the Cardano ETF would trade on NYSE Arca, offering regulated exposure to ADA.
- Traditional investors could buy and sell shares tied to ADA’s price without directly holding the cryptocurrency.
- This could increase institutional adoption and make Cardano more accessible to a broader market.
Approval Odds Are Improving
- Polymarket currently estimates a 62% chance of approval, up from 51% in January 2025.
- Growing optimism follows the SEC’s acceptance of multiple crypto ETF filings, including Grayscale’s XRP ETF.
Potential Impact on ADA’s Price
- A Cardano ETF could drive institutional demand, pushing ADA’s price higher.
- Key support levels to watch:
- $0.67 to $0.81 – Holding above this range could fuel further gains.
- Below $0.67 – May lead to downward pressure.
- ADA is currently trading at $0.68, with a market cap of $24.16B and trading volume surging 81% to $1.08B.
What’s Next?
- The SEC has 180 days to make a decision, meaning approval or rejection will come by August 2025.
- If approved, Cardano would join Bitcoin and Ethereum in gaining ETF status, further legitimizing ADA as a key digital asset.
As crypto ETFs gain regulatory traction, ADA’s potential ETF approval could be a game-changer for its long-term market adoption.
If the Cardano ETF is approved, it could pave the way for more altcoin ETFs, further mainstreaming crypto investments. Institutional adoption would likely extend beyond Bitcoin and Ethereum, shifting focus to Layer-1 blockchains like Cardano, Solana, and Avalanche as viable long-term investment assets.