Crypto asset manager Grayscale has officially filed for a Cardano (ADA) exchange-traded fund with the New York Stock Exchange (NYSE), aiming to broaden its suite of regulated crypto offerings. This marks the firm’s first standalone product dedicated to ADA, despite past hints of launching such a vehicle.
Details of the Proposed ETF
If approved, the new fund would hold only ADA, offering a direct, regulated channel for both retail and institutional investors to gain exposure. According to the recent 19b-4 filing, Coinbase Custody is set to serve as custodian of the assets, while BNY Mellon Asset Servicing would handle administration duties.
The filing follows similar moves from major asset managers seeking to convert or create altcoin-focused ETFs, including products tied to Solana (SOL), XRP, and Litecoin (LTC). Many in the industry attribute these developments to President Donald Trump’s pro-crypto policies, which have emboldened companies to pursue ETF approvals.
Cardano’s Price Reaction
Shortly after the news broke, ADA rallied about 14%, reaching an intraday high near $0.80. While the token remains down around 17% over the past two weeks due to broader market volatility, the recent bounce highlights renewed optimism. Historically, ADA has seen significant gains over time—its price jumped 140% in the last six months—and some analysts predict that a spot ETF could potentially drive further price appreciation, assuming regulatory approval.
ADA had peaked at $1.16 on January 18, 2025, before sliding alongside most altcoins during a market-wide downturn. With this ETF announcement, many traders are watching to see if a wave of institutional interest can boost ADA’s momentum again.
Spot ETF Landscape
In parallel to the Cardano filing, the U.S. market for spot crypto ETFs has seen mixed signals in February. Data from Farside Investors indicates total inflows of $578 million and outflows of $561 million, leaving the month almost balanced so far. The latest daily data shows:
- Fidelity’s FBTC: $136 million outflow
- Grayscale’s GBTC: $46.3 million outflow
- BlackRock’s IBIT: $55.3 million inflow
In contrast, spot Ethereum ETFs have been mostly positive, with just one outflow day this month—the same day Bitcoin-focused products saw major redemptions. Some observers interpret this as a sign of growing diversification among institutional players.
Looking Ahead
If the Cardano ETF secures the green light from regulators, it could mark a turning point for ADA’s adoption in mainstream finance. A successful launch might prompt an influx of capital from risk-averse investors who prefer the structure and security of an ETF. Conversely, any regulatory pushback or macroeconomic headwinds could dampen enthusiasm and stall the fund’s debut.
For now, Cardano holders and potential newcomers alike are watching closely. With ADA’s price rebounding and industry momentum building, many are cautiously optimistic that one of the market’s most popular altcoins could soon join Bitcoin and Ethereum in the ranks of approved U.S. spot ETFs.
