U.S. SEC has acknowledged a Cardano ETF filing from crypto asset manager Grayscale

NYSE Arca, a division of the NYSE Group, initially submitted a proposal to the SEC on February 10 to list and trade shares of the Grayscale Cardano Trust on the exchange.

The U.S. securities regulator SEC has acknowledged a Cardano ETF filing from crypto asset manager Grayscale, effectively opening a 240-day window to approve or reject the application.

NYSE Arca, a division of the NYSE Group, initially submitted a proposal to the SEC on February 10 to list and trade shares of the Grayscale Cardano Trust on the exchange.

The proposed ETF is designed to mirror Cardano price movements by referencing an index that tracks its daily valuation across cryptocurrency exchanges. Coinbase has been designated as the prospective custodian for the ADA held within the ETF.

A Cardano ETF would allow investors to gain exposure to ADA without the need to use cryptocurrency exchanges or manage private keys. Instead, investors would have the option of purchasing shares in a Cardano ETF through their stockbroker.

Analysts expect multiple altcoins to become investable through ETFs in 2025

Cardano is one of many altcoins that could potentially become investable through ETFs in the United States market. Other notable contenders include XRP, Solana, Dogecoin and Litecoin.

Recently, Bloomberg’s ETF analysts James Seyffart and Eric Balchunas shared their view on the likelihood of various altcoin-tied ETFs to receive approval in 2025. The analysts gave the highest likelihood of approval to Litecoin ETFs, with a 90% chance.

However, the demand for altcoin ETFs remains an open question. Notably, top Bitcoin and Ethereum ETF issuers BlackRock and Fidelity haven’t yet filed to launch ETFs tied to other crypto assets, which could be a signal that they anticipate low demand.

A Cardano ETF approval and bullish fundamentals could push ADA higher in 2025

Despite ADA’s disappointing price action in the last few months (the coin is down 33% in the last 90 days), the Cardano project has been steadily progressing on the fundamental side.

The two most recent major upgrades to the Cardano protocol, Chang 1 and Plomin, focused on decentralizing Cardano’s governance system.

With January’s Plomin upgrade, Cardano transitioned to full decentralized governance, enabling delegated representatives (DReps) to vote on Cardano governance actions using both their own ADA and ADA coins delegated to them by individual holders.

As far as future ADA price action is concerned, the algorithmic Cardano price prediction on CoinCodex is forecasting significant upside ahead. Per the prediction, ADA is expected to hit as high as $1.25 in 2025, which would be a 92% increase over the current ADA price.

Still, even this bullish forecast is significantly short of ADA’s all-time high of $3.10, which was reached in September of 2021.

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