Key Information:
- Grayscale applies for a spot ADA ETF in the U.S.
- ADA’s price increased by 11% driven by ETF optimism.
- Despite the increase, ADA remains 36% below its December peak of roughly $1.37.
Cardano’s ADA token recently surged by 11% after Grayscale Investments submitted its application for the first-ever spot ADA exchange-traded fund (ETF) in the U.S. As per CoinDesk data, ADA’s price rose to $0.80, influenced by market optimism surrounding the ETF filing.
Yet, ADA still trades 36% below its heights achieved in December, where it touched around $1.37.
Grayscale is a prominent asset management firm in the crypto space and seeks to have the ADA ETF listed on the New York Stock Exchange. The introduction of such an ETF would allow investors to gain exposure to ADA without needing to possess the cryptocurrency directly.
Both Bitcoin and Ether have witnessed spot ETFs commence trading in the U.S. last year, drawing billions in investments and advancing the narrative of institutional acceptance.
It’s important to note that the U.S. SEC’s approval for spot Bitcoin and Ether ETFs was significantly tied to the CME’s surveillance system for their futures trading, aimed at limiting price manipulation risks. Currently, ADA futures have not been listed by CME.
However, the abatement in concerns over future approval doesn’t seem to be rattling the markets, as ADA’s price surge indicates.
Focus on Layer 1 Cryptocurrencies
The cryptocurrency market is witnessing a shift in attention towards Layer 1 coins, including BTC, ETH, and SOL, as noted by the analytics firm Santiment. The current conversations focus significantly on these assets, while fewer discussions about meme cryptocurrencies such as Dogecoin and Shiba Inu were reported.
“The crypto community is shifting its focus towards Bitcoin and other Layer 1 assets like Ethereum, Solana, and Cardano. Presently, the top Layer 1 assets comprise 44.2% of discussions among specific coins, whilst meme coins are receiving less attention,” Santiment expressed on X.
This inclination away from meme coins could signify a transition toward a more stable and sustainable market environment.
Bitcoin is currently trading in a limited range between $95,000 and $100,000 due to trade war concerns and inflation expectations within the U.S. Meanwhile, Ether remains in a price range of $2,500-$2,900 after recovering from previous lows.
Analysts have remarked that Bitcoin could play a significant role in retaining its position as an alternative value store. Recent shifts in Bitcoin’s price appeal suggest a growing institutional interest that continues to support its long-term potential.
