Cardano (ADA) Jumps 14% as Grayscale Files for Spot ADA ETF

Grayscale has taken a step toward launching a Cardano (ADA) exchange-traded fund (ETF) by filing an application with the New York Stock Exchange (NYSE) on February 10. The move signals the asset manager’s continued expansion into regulated cryptocurrency products. Meanwhile, the announcement made ADA surge by over 14% in a day, as per CoinGecko.

Grayscale filed 19b-4 for a spot Cardano ETF. First one in US and ballpark 60th crypto ETF filed this year so far pic.twitter.com/alj7EjtfIS

— Eric Balchunas (@EricBalchunas) February 11, 2025

The filing comes shortly after the U.S. Securities and Exchange Commission (SEC) acknowledged NYSE Arca’s request to list and trade shares of Grayscale’s Solana Trust. Last month, the exchange had already submitted a 19b-4 form, progressing to the next phase of introducing a spot crypto ETF.

Grayscale’s ETF Expansion Strategy

While Grayscale is in the process of converting its existing Solana (SOL) and XRP trusts into spot ETFs, the Cardano ETF represents an entirely new fund. NYSE Arca filed to transition Grayscale’s XRP trust into a spot ETF on January 30, followed by a similar filing for its SOL trust on February 6.

According to Grayscale’s 19b-4 filing, the proposed ETF will exclusively hold ADA, with each share representing a proportional stake in the fund’s reserves. Coinbase Custody will serve as the asset custodian, while BNY Mellon Asset Servicing will oversee administrative duties.

ADA Price Reacts to ETF News

Following the announcement, ADA surged over 14% within the day, with most of the increase occurring shortly after the news emerged. The token reached an intraday high of $0.80 but remains down 17% over the past two weeks due to the broader altcoin market struggles. Cardano peaked at $1.16 on January 18 but has been in a downtrend since.

Despite the recent bearish momentum, analysts suggest a potential shift in ADA’s price trajectory. Crypto analyst Ali Martinez noted that ADA must maintain support between $0.67 and $0.81 to counter further declines. A successful rebound above $0.81 could set the stage for a rally toward its all-time high above $3.

Growing Interest in Altcoin ETFs

Grayscale’s filing comes amid a surge in crypto ETF applications as issuers gauge the SEC’s stance under Commissioner Mark Uyeda’s leadership. The recent wave includes proposals for altcoin ETFs, such as XRP, Solana, and Litecoin, from firms like Canary Capital, WisdomTree, 21Shares, Bitwise, and VanEck.

According to Bloomberg analysts, Litecoin currently has the highest approval odds at 90%, followed by Dogecoin, Solana, and XRP. They highlighted a notable shift in expectations, as approval chances for most of these altcoin ETFs were below 5% before the U.S. election.