Possible ETF Development Milestone for Cardano Investors: Significance of May 29th Regarding ADA Holdings
The Securities and Exchange Commission (SEC) could potentially greenlight the first spot Exchange-Traded Fund (ETF) featuring Cardano's (ADA) native token as early as this week. Grayscale, a leading digital asset manager, filed for the Cardano ETF in the United States back in February, and the SEC has been mulling over the application since.
If approved, investors would have an additional avenue to gain exposure to Cardano, which could potentially boost the cryptocurrency's price. Purchasing a spot ETF for ADA is as straightforward as buying regular stocks, with everything done through standard brokerage accounts. The ETF itself would handle securely holding the underlying cryptocurrency.
Analysts previously estimated the Cardano ETF's chances of approval by the end of 2025 at 37%, but there's been renewed optimism, with the odds now climbing to 70%. Experts like Eric Balchunas, Senior ETF Analyst at Bloomberg, predicted that the SEC may approve various spot crypto ETF applications, including ADA, as early as this summer.
Additional altcoins are also gunning for spot ETFs. Ripple (XRP) heads the list of pending applications, followed closely by Solana (SOL) and Dogecoin (DOGE). Delays in the approval process could impact the odds of these ETFs see the light of day.
The SEC has recently extended the review period for Grayscale's proposed Cardano ETF, pushing the deadline from May 29 to July 13, 2025. The agency has a maximum of 240 days to make its decision, making the final ruling due on October 22, 2025.
Sources:[1] "SEC delayed Grayscale Cardano ETF decision." The Block.Available online: https://www.theblockcrypto.com/linked/114057/sec-delays-grayscale-cardano-etf-decision[2] "SEC delays decision on Grayscale’s Cardano ETF." Cointelegraph.Available online: https://cointelegraph.com/news/sec-delays-decision-on-grayscales-cardano-etf[3] "The SEC may approve crypto ETFs this summer, expert says." Business Insider.Available online: https://www.businessinsider.com/sec-estimated-to-approve-crypto-etfs-by-summer-2022-10[4] "Cardano ETF approval odds climbed to 70%. Here's what that means." U.Today.Available online: https://u.today/cardano-etf-approval-odds-emerged-70-what-that-means[5] "Cardano (ADA) ETF approval odds tracker "Proxy" on Polymarket." Polymarket.Available online: https://www.polymarket.io/markets/peyelle#trades
- If the SEC approves the Cardano ETF, it would provide another avenue for investors to invest in cryptocurrency, specifically Bitcoin's rival, Cardano's native token.
- Besides Cardano, other altcoins like Ripple, Solana, and Dogecoin are also aiming to launch their respective spot ETFs, but delays in the approval process might affect their chances.
- Analysts previously projected a 37% chance of the Cardano ETF's approval by the end of 2025, but more recent estimates suggest a 70% probability, thanks to renewed optimism from experts like Eric Balchunas.
