Grayscale’s Spot ADA ETF Filing Boosts Cardano’s ADA, Outshining Bitcoin and Ether

Cardano’s ADA token surged by 11%, outperforming Bitcoin (BTC) and Ether (ETH), after Grayscale Investments submitted an application for the first-ever U.S. spot ADA exchange-traded fund (ETF).

ADA reached 80 cents, with the price increase kicking off late Wednesday, according to CoinDesk data. However, the ninth-largest cryptocurrency by market cap remains 36% below its December peak of around $1.37.

Grayscale, a prominent crypto asset manager, filed to launch a spot ADA ETF on the New York Stock Exchange. If approved, the ETF would allow investors to gain exposure to ADA without owning the underlying cryptocurrency.

Spot ETFs for Bitcoin and Ether were launched last year, garnering billions in investor funds and strengthening the narrative around institutional crypto adoption.

The approval of Bitcoin and Ether spot ETFs by the U.S. Securities and Exchange Commission (SEC) was based on the belief that CME’s surveillance systems for futures would limit concerns regarding price manipulation. This has made futures listings a key factor for spot ETF approval, but CME has yet to list ADA futures.

Despite this, ADA’s recent price spike indicates that the market is not overly concerned.

Shift Toward Layer 1 Cryptos

As investor focus shifts, Layer 1 cryptocurrencies like Bitcoin, Ethereum, Solana, Toncoin, and Cardano are seeing increased attention. According to Santiment, discussions around top Layer 1 assets now account for 44.2% of conversations in the crypto community, while meme coins such as Dogecoin, Shiba Inu, and Pepe have seen reduced activity.

This shift suggests that the market is moving toward a more stable and sustainable environment, with Layer 1 assets perceived as more reliable.

Bitcoin and Market Sentiment Amid Economic Uncertainty

Bitcoin continues to trade between $95,000 and $100,000, with upward momentum constrained by trade war concerns and rising inflation expectations in the U.S. Ether, the second-largest cryptocurrency, has fluctuated between $2,500 and $2,900 since recovering from a sudden dip to $2,000 earlier in the week.

Meanwhile, macroeconomic conditions have seen traders flocking to gold, with its price recently reaching new all-time highs above $2,900 per ounce.

Analysts remain optimistic about Bitcoin’s long-term potential, despite short-term volatility.

“Bitcoin’s reduced volatility and the growing price of gold underscore Bitcoin’s appeal as a hedge against inflation,” said analysts at Bitfinex. “With increasing institutional interest and Bitcoin’s role as a store of value, its long-term outlook is more promising than ever.”

As Bitcoin’s total supply remains fixed, analysts believe its narrative as a hedge against fiat currency devaluation is gaining traction, with over $196 billion worth of Bitcoin held by ETFs, companies, and even governments.