Cardano ETF Will Be Available, Positive for ADA Coin: What Do You Need to Know?

Bittime - In 2025, the cryptocurrency world will once again become excited by plans to launch an Exchange-Traded Fund (ETF) for Cardano (ADA).

In this article, we will discuss what a Cardano ETF is, how it can positively impact the price and popularity of ADA, and why it is important for the future of the Cardano ecosystem.

What is Cardano ETF?

ETF is an investment product that allows investors to buy shares or tokens of a particular asset without having to directly buy the asset. In the cryptocurrency world, ETFs provide an easy way for traditional investors to invest in crypto without having to hold the coins directly.

For Cardano ETF it could be a gateway for more institutional and retail investors to access ADA's price growth potential.

In early 2025, Grayscale Investments apply to launch Cardano Spot ETF through NYSE Arca, a subsidiary of the NYSE Group.

This is certainly good news for ADA, because with the launch of this ETF, investors can buy exposure to ADA without having to buy and hold it themselves.

For many investors, this ease of access can be a key factor in their decision to invest.

Why could the Cardano ETF have a positive impact on ADA?

The introduction of the Cardano ETF to the market could provide a number of major benefits for ADA, both in terms of visibility and price. Here are some reasons why the launch of this ETF could be a game-changer for Cardano:

1. Easier Access for Traditional Investors

For traditional investors who may not be familiar with how to buy and hold ADA, ETFs provide a very easy solution.

By purchasing ETF shares through a regular brokerage account, they can gain exposure to ADA prices without having to be directly involved in managing crypto assets.

2. Increase Liquidity and Trading Volume

An ETF that is successfully launched will usually increase the trading volume of the assets in the ETF.

Cardano ETF is predicted to attract more investors, both individual and institutional, which in turn will increase ADA liquidity in the market.

3. Strengthening Cardano's Position in the Crypto Market

The launch of the Cardano ETF also strengthens Cardano's position as one of the most promising layer-1 blockchains, as demand for diversified investment products beyond Bitcoin and Ethereum continues to grow.

If the Cardano ETF is successfully accepted by the SEC, Cardano will be increasingly seen as a serious alternative in the world of crypto investment.

How is the Cardano ETF Launching Process?

In February 2025, NYSE Arca applied to launch a Cardano ETF in partnership Grayscale Investments as the main investment manager.

In this filing, Grayscale requested permission to list and trade shares Grayscale Cardano Trust, which will be the first investment product focused on Cardano.

As part of this plan, Coinbase Custody Trust Company will act as custodian for storing Cardano assets (ADA) safely, temporarily BNY Mellon will serve as administrator of the fund.

However, before the official launch, the Cardano ETF must receive approval from US Securities and Exchange Commission (SEC).

Although the SEC has begun to soften by approving several ETFs for Bitcoin and Ethereum, this decision still has regulatory challenges, considering that crypto is still a relatively new asset category in the eyes of traditional regulatory authorities.

ADA Price Growth Potential After ETF Launches?

Looking at the history of ETF launches for Bitcoin and Ethereum, it can be predicted that ADA prices may also be pushed up after the ETF launches. With investment products that are more easily accessible to various groups, interest in ADA can increase rapidly.

As we saw with Bitcoin, the first ETF was launched in 2024 and immediately had a major impact on the price of Bitcoin which experienced a significant spike after being accepted by the SEC.

If the Cardano ETF also gets approval, there is a big chance for ADA to repeat the same success.

Market analyst predicts that as more investors become involved in ADA via ETFs, the price of this coin could experience a substantial increase in the next few years.

Some predictions even say that ADA could reach a much higher value after this successful launch.

How Cardano ETF Increases Competition in Crypto Markets?

The launch of the Cardano ETF not only has a positive impact on ADA, but also encourages healthier competition in the crypto market.

For example, the launch of ETFs for Solana, XRP, and Litecoin are also being considered, with each company and investment manager vying for SEC approval.

However, the presence of the Cardano ETF could provide a strong signal that ADA is a serious project and is ready to compete with Bitcoin and Ethereum. This will add diversity to crypto investment products and offer more diversified alternatives for investors.

Challenges Cardano ETF May Face

Even though there is a lot of positive potential, it cannot be denied that there are still challenges that the Cardano ETF must face. One of the main challenges is regulatory decisions from the SEC.

Despite the optimism, the SEC is still cautious about granting approval to crypto products other than Bitcoin and Ethereum. It is possible that the approval process will take longer, considering that the SEC is still in the stage of setting stricter crypto regulations.

Additionally, although Cardano has received a lot of attention from developers and the community, there is no guarantee that all investors will immediately switch to ADA once this ETF launches.

Understanding the blockchain technology that Cardano uses and how it differs from Bitcoin or Ethereum will be an important factor in attracting new investors.

Conclusion

Overall, a launch Cardano ETF can be a big positive step for Cardano (ADA) and investors around the world.

By providing easier and safer access for investors to participate in ADA price movements, this ETF has the potential to increase ADA demand and price stability in the market.

While regulatory challenges remain, optimism regarding the launch of this ETF is high, and if successfully approved by the SEC, Cardano will increasingly be seen as one of the major players in the crypto world.

FAQ Cardano ETF

1. What is Cardano ETF?

Cardano ETF is an investment product that allows investors to gain exposure to the price of Cardano (ADA) without needing to purchase and hold ADA directly.

2. How does the Cardano ETF affect the price of ADA?

The launch of the Cardano ETF could have a positive impact on the price of ADA by increasing the visibility and accessibility of the coin to more investors, especially institutional. When more people buy ETFs, which reflect ADA price movements, demand for ADA in the market could increase.

3. When will the Cardano ETF launch?

Cardano ETF is currently still in the process of applying for approval from US Securities and Exchange Commission (SEC), with Grayscale Investments who was the main proponent. If approved, this ETF is expected to launch in the near future, although there is no firm date yet.

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References

• Crypto news, Grayscale Pushes for Spot Cardano ETF in Latest SEC Filing, accessed on Januari 12, 2025

Author: Fkey