Institutional Investors See Value in Cardano (ADA) After Stellar Performance in 2024

Cardano (ADA) has seen increased interest from institutional investors following a stellar performance in 2024. Despite a slight pullback in the broader crypto market this year, Grayscale, the world’s largest digital asset manager, is ramping up its ADA exposure.

In an update on its Smart Contract Platform Ex-Ethereum Fund, the digital asset manager noted that Cardano now comprises 20% of the fund. ADA is now the second-largest asset in this fund after Solana (SOL).

The Grayscale Smart Contract Platform Ex-Ethereum Fund provides investors with indirect exposure to the native tokens of promising smart contract platforms. Following the rebalancing of this fund, investors who purchase the product will gain indirect access to ADA.

This rebalancing could indicate rising demand for the token. Moreover, as reported earlier by ZyCrypto, the Cardano blockchain is set to undergo a series of upgrades this year, which could also drive value.

However, Grayscale is not the only institutional platform looking to boost ADA’s presence in traditional finance.

Cardano Joins Hashdex Nasdaq Crypto ETF

In another development, asset manager Hashdex has added ADA to its Nasdaq Crypto ETF, giving institutional investors a chance to invest in the asset.

The Hashdex Nasdaq Crypto ETF has $651M in net assets, and in addition to Cardano, it also holds Bitcoin (BTC) and Ethereum (ETH). Cardano has a weighting of 1.67%, making it the fifth-largest asset in the fund.

The attention that Cardano is receiving from institutional investors could help drive value for the asset. Furthermore, these products could also increase demand for issuers to seek approval for a Cardano spot exchange-traded fund (ETF) in the near term.

Will A Cardano ETF Launch In 2025?

The crypto industry is abuzz with speculation over whether the incoming leadership change at the US Securities and Exchange Commission (SEC) will accelerate the approval of more crypto ETFs after Bitcoin and Ethereum.

However, despite the optimism, the majority of traders on Polymarket do not believe that a spot Cardano ETF will be approved this year. Only 25% of traders on Polymarket are betting on a spot Cardano ETF getting approval in 2025.

It is also crucial to note that the SEC has named Cardano as a security in its lawsuits against the Binance and Coinbase exchanges. Hence, for a spot Cardano ETF to get approval, the regulator’s enforcement division must dismiss claims that the token is a security.