Grayscale ETF Move Propels Cardano’s ADA to Outpace Bitcoin and Ether.

Grayscale’s Spot ADA ETF Filing Drives Cardano’s ADA Price Surge, Outshining Bitcoin and Ether

Cardano’s ADA token spiked by 11%, outperforming both Bitcoin (BTC) and Ether (ETH), following Grayscale Investments’ submission of an application for the first-ever spot ADA exchange-traded fund (ETF) in the United States.

ADA reached 80 cents, with the price rise beginning late Wednesday, according to CoinDesk data. Despite this gain, Cardano’s ADA remains down 36% from its December peak of around $1.37.

Grayscale, a well-known crypto asset management firm, filed to list a spot ADA ETF on the New York Stock Exchange. If approved, this would allow investors to gain exposure to Cardano’s ADA without having to directly own the cryptocurrency.

The U.S. launch of Bitcoin and Ether spot ETFs last year helped secure billions in investor capital, reinforcing institutional adoption of cryptocurrencies.

The U.S. Securities and Exchange Commission (SEC) approved the Bitcoin and Ether ETFs primarily because of the market surveillance provided by CME’s bitcoin and ether futures. This oversight was seen as a way to reduce price manipulation concerns. Futures listings from CME are generally seen as a prerequisite for spot ETF approval, but the exchange has yet to launch ADA futures.

Despite this, the market remains optimistic, as seen by ADA’s impressive price surge.

Focus Shifts to Layer 1 Cryptocurrencies

The shift in investor interest from meme coins to Layer 1 cryptocurrencies, including Bitcoin, Ethereum, Solana, Toncoin, and Cardano, is becoming more apparent. Analytics firm Santiment reports that 44.2% of discussions in the crypto space are now focused on top Layer 1 assets, as compared to a decline in conversations around meme coins such as Dogecoin, Shiba Inu, and Pepe.

This trend suggests that investors are shifting toward more sustainable, stable assets, signaling a healthier market environment.

Bitcoin’s Stagnation Amid Economic Uncertainty

Bitcoin is currently trading in a narrow range between $95,000 and $100,000, with upward movement hindered by concerns over trade wars and rising inflation expectations in the U.S. Similarly, Ether has been fluctuating between $2,500 and $2,900 since recovering from a sudden drop to $2,000 earlier this week.

Macro traders have been increasingly drawn to gold, with the precious metal hitting all-time highs above $2,900 per ounce.

Despite short-term fluctuations, Bitcoin’s long-term prospects remain solid, according to analysts.

“Bitcoin’s increasing popularity as a store of value, especially in the face of rising gold prices and inflation concerns, supports its long-term growth potential,” said analysts at Bitfinex. “As more institutional players enter the market, Bitcoin’s appeal continues to strengthen, offering a hedge against fiat devaluation risks.”

Bitcoin’s fixed supply remains a key part of its value proposition, with over $196 billion worth of Bitcoin now held by ETFs, companies, and even nation-states. As central banks expand money supply, Bitcoin’s narrative as a hedge against inflation and currency devaluation continues to gain traction.

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