Spot Cardano ETF Application: Grayscale Seeks Approval In The US

On Monday, asset manager and crypto ETF issuer, Grayscale, officially filed a 19b-4 proposal with the US Securities and Exchange Commission (SEC) to launch a spot Cardano ETF. 

First-Ever Cardano ETF Proposal Submitted 

This move marks the first formal application for a Cardano ETF and comes on the heels of an increasing number of crypto ETF filings by major asset managers, signaling a strong focus on altcoins.

The proposal arrives at a time when several prominent cryptocurrencies, including Litecoin (LTC), Solana (SOL), XRP, and Dogecoin (DOGE), have already garnered attention from the SEC through similar applications.

Despite ADA’s status as one of the largest cryptocurrencies by market capitalization, experts caution that the Cardano ETF could face delays. 

Litecoin Leads With 90% Approval Odds

Bloomberg ETF expert Eric Balchunas anticipates that other altcoins may receive approval before Cardano, creating a competitive landscape for ETF applications. 

Balchunas recently shared insights on approval odds, placing Litecoin at the forefront with a 90% chance of getting the green light, followed by Dogecoin, Solana, and XRP.

The recent shift in leadership at the SEC may play a crucial role in determining the fate of these applications. Under the current administration, there has been a noticeable pro-crypto stance, which could potentially enhance the chances of approval for the Cardano ETF and others. 

This regulatory environment is particularly relevant as the market seeks to expand beyond the existing Bitcoin (BTC) and Ethereum (ETH) ETFs.

The news of Grayscale’s Cardano ETF application has already had a positive impact on ADA’s market performance. Following the announcement, Cardano’s price experienced a notable rebound, trading at approximately $0.71, reflecting a nearly 7% increase within a 24-hour period. 

This surge is especially significant given the broader market challenges that have affected crypto prices recently, with ADA retracing over 30% in the past month and hitting a four-month low of $0.50 last week.

Featured image from Shutterstock, chart from TradingView.com