Cardano’s ADA Surges 11% After Grayscale Files for Spot ADA ETF, Outperforming BTC and ETH
Cardano’s ADA token saw an 11% increase, outperforming both Bitcoin (BTC) and Ether (ETH), after Grayscale Investments applied for the first-ever spot ADA exchange-traded fund (ETF) in the U.S.
ADA rose to 80 cents, beginning the surge late Wednesday, as reported by CoinDesk data. Despite this rise, ADA is still down 36% from its December high of approximately $1.37.
Grayscale, a prominent crypto asset manager, filed to list the first-ever spot ADA ETF on the New York Stock Exchange. If successful, this would allow investors to gain exposure to ADA without owning it directly.
Last year, Bitcoin and Ether spot ETFs were launched in the U.S., attracting significant investor capital and boosting the institutional adoption narrative for cryptocurrencies.
The approval of the Bitcoin and Ether ETFs by the U.S. Securities and Exchange Commission (SEC) was heavily influenced by the CME’s surveillance system for their respective futures markets, designed to mitigate price manipulation risks. However, the CME has yet to list ADA futures, which many see as a necessary step before a spot ADA ETF can be approved.
Despite the absence of ADA futures, the market remains optimistic, as reflected by the ADA price increase.
Layer 1 Coins in the Spotlight
There has been a noticeable shift in investor focus from meme coins to Layer 1 cryptocurrencies like Bitcoin, Ethereum, Solana, and Cardano. According to analytics firm Santiment, 44.2% of crypto discussions now center on top Layer 1 assets, while conversations about meme coins such as Dogecoin, Shiba Inu, and Pepe have dwindled.
This shift suggests that investors are turning toward more stable and sustainable assets, signaling a more stable market environment.
Bitcoin’s Sideways Movement Amid Economic Uncertainty
Bitcoin continues to trade between $95,000 and $100,000, with little movement due to concerns about trade wars and rising inflation expectations in the U.S. Ether, the second-largest cryptocurrency by market cap, is also stuck in a range of $2,500 to $2,900, recovering from a dip to $2,000 earlier this week.
Meanwhile, gold has been gaining investor attention, hitting an all-time high above $2,900 per ounce.
Analysts believe Bitcoin’s long-term prospects remain strong despite short-term volatility.
“Bitcoin’s role as a store of value continues to grow, especially as gold prices rise and inflation concerns mount,” analysts at Bitfinex stated. “The increasing interest from institutional investors and its positioning as a hedge against inflation and fiat devaluation supports its long-term outlook.”
Bitcoin’s fixed supply and the growing adoption from ETFs, companies, and nation-states make it an attractive option for investors concerned about fiat currency devaluation. With over $196 billion worth of Bitcoin held in such entities, the narrative for Bitcoin as a store of value continues to gain traction.
