Cardano's native token ADA jumped nearly 15% to $0.88063 as institutional investment firm Grayscale Investments registered a Cardano Trust ETF in Delaware, spurring traders on prediction markets to price approval odds at 80% for 2025. The development represents the latest push by asset managers to capitalize on the Trump administration's supportive cryptocurrency policies.
What to Know:
- Grayscale registered a Cardano Trust ETF in Delaware on August 12, typically the first step before SEC filing
- Prediction market Polymarket shows 80% odds for Cardano ETF approval in 2025
- ADA token climbed 15% in 24 hours following the trust registration news
Institutional Interest Drives Market Optimism
The asset manager's Delaware filing through CSC Delaware Trust represents a standard preliminary step in Grayscale's exchange-traded fund development process. Delaware's public registry portal shows the new Grayscale Cardano Trust ETF alongside a similar Hedera Trust ETF filing.
Web3 researcher Justin Wu noted the significance of these moves. "Both networks have growing RWA adoption stories, and this step often comes before a spot ETF filing; a green light can bring a wave of institutional capital," Wu wrote.
The trust registrations follow Grayscale's established playbook for ETF launches. These general statutory trusts typically precede formal S-1 filings with the Securities and Exchange Commission, though registration alone does not guarantee regulatory approval.
Grayscale's expansion beyond Bitcoin and Ethereum reflects growing institutional demand for diversified cryptocurrency exposure through regulated investment vehicles. Cardano's peer-reviewed development methodology and scalable blockchain infrastructure have positioned the network as a candidate for mainstream institutional adoption.
The filing coincides with broader industry momentum toward alternative cryptocurrency ETFs. Asset managers are leveraging the current administration's favorable regulatory stance to advance products beyond the established Bitcoin and Ethereum offerings.
SEC Review Process Already Underway
Federal regulators have already begun formal review procedures for Cardano ETF proposals. The SEC acknowledged NYSE Arca's 19b-4 filing for a proposed Cardano ETF earlier this year, initiating the standard regulatory examination process.
Regulatory acknowledgment of such filings represents an early but critical step toward potential approval. The process indicates active regulatory engagement rather than outright dismissal of the proposal. Industry observers draw parallels to the approval pathway for the first spot Bitcoin ETFs. Those products underwent months of regulatory scrutiny following initial filings before receiving approval.
A successful Cardano ETF would allow traditional investors to gain ADA exposure without managing digital wallets or private keys. The product would trade on conventional stock exchanges like other ETFs.
Understanding Key Financial Terms
An exchange-traded fund (ETF) is an investment vehicle that tracks the price of underlying assets and trades on stock exchanges like individual stocks. Spot ETFs hold the actual cryptocurrency rather than derivative contracts.
The 19b-4 filing is a formal rule change proposal that exchanges must submit to the SEC when listing new securities products. Real World Assets (RWA) refers to traditional financial instruments and physical assets being tokenized on blockchain networks.
Prediction markets like Polymarket allow users to bet on future events, with prices reflecting collective probability assessments. Delaware incorporation is common for investment trusts due to the state's business-friendly legal framework.
Standardized Framework Could Accelerate Approvals
Market analysts anticipate implementation of a standardized cryptocurrency ETF approval framework within two months. This system would potentially allow batch approvals rather than individual product reviews.
Such a framework could expedite ETF launches for multiple cryptocurrencies including XRP, Solana, and Cardano. Nate Geraci, an ETF analyst, suggested this approach could create "a wave" of new cryptocurrency ETFs entering the market simultaneously. The standardized process would streamline regulatory review while maintaining investor protection standards. Multiple asset managers have expressed interest in launching ETFs for various alternative cryptocurrencies.
Closing Thoughts
Grayscale's Delaware trust registration has intensified speculation around Cardano ETF approval, driving both price appreciation and market optimism. The combination of regulatory progress and institutional interest suggests growing momentum for alternative cryptocurrency investment products beyond Bitcoin and Ethereum.
