ADA jumps 15% with Grayscale’s debut of Cardano ETF plan

Today, Cardano investors are celebrating a significant development as Grayscale has made a bold move by filing for a Cardano ETF with NYSE Arca. This news has caused a surge in ADA prices, which have skyrocketed by over 15% to reach $0.815. Grayscale Investments, known for managing the third largest Bitcoin ETF, is looking to launch the first-ever Cardano Exchange Traded Fund (ETF) on the New York Stock Exchange. The 19b-4 form has been submitted to the SEC by NYSE Arca on behalf of Grayscale, marking a groundbreaking step in the world of cryptocurrency trading.

The announcement of the Cardano ETF has had a positive impact on ADA prices, lifting them up significantly after a period of decline. Cardano, often seen as a potential rival to Ethereum, has seen its prices rise by more than 15% in the past 24 hours, reaching $0.815. This surge in value comes as a relief for the ninth-largest cryptocurrency by market cap, which had been experiencing a downward trend in recent weeks, with prices dropping towards $0.5.

Grayscale has been instrumental in bringing institutional investors into the cryptocurrency space, starting with the establishment of the Bitcoin Trust in 2013, which later transitioned into a Bitcoin ETF in 2024. The firm also manages three other crypto ETFs, including Bitcoin Mini Trust ETF, Ethereum Trust ETF, and Ethereum Mini ETF, as well as trusts for Avalanche, Solana, and Dogecoin, with plans to establish Ripple and Solana ETFs in the future.

Many analysts and investors had high hopes for Cardano this year, with some predicting a year-end price of $2.95. However, recent weeks have seen ADA prices struggling, with the cryptocurrency closing in the red for 8 out of the last 10 days. This downward trend pushed ADA below key support levels, hitting a low of around $0.65. As of now, Cardano is trading at around $0.79, marking a three-month low.

The news of the Cardano ETF, along with the recent collaboration with Walmart, has provided some respite for Cardano, but challenges remain. To see a sustained rebound, buyers will need to push ADA above the critical support-turned-resistance level of $0.91. This, combined with positive macro-factors, could propel ADA past the $1 mark, paving the way for a new all-time high and potentially reclaiming its position as a top choice for investors in 2025.