Cardano ETF Delays Prompt Market Reactions, Advocating Accumulation
The recent decision by the U.S. Securities and Exchange Commission (SEC) to delay the approval of the Grayscale Cardano ETF until October 26, 2025, has had a significant impact on the cryptocurrency market. While the short-term effect led to a 6.67% drop in ADA’s price to $0.86 in late August, this delay could actually present an opportunity for savvy investors. Rather than being seen as a setback, this regulatory hurdle might pave the way for increased institutional adoption of Cardano in the long run, as market participants are prompted to prepare for a post-ETF landscape by factoring in uncertainty and developing the necessary infrastructure.
This extended review period by the SEC underscores their cautious approach to balancing innovation with protecting investors. The delay has compelled those involved in the market to address crucial queries, such as the resilience of custody solutions for altcoins, the sustainability of liquidity for DeFi protocols amidst regulatory scrutiny, and the readiness of the market for an ADA-accessible regulated investment vehicle. The answer to these questions appears to be positive, as Cardano’s Total Value Locked (TVL) within DeFi protocols surged to $423.6 million in the third quarter of 2025, driven by platforms like Liqwid Finance and Indigo Protocol. This growth, along with Cardano’s inclusion in a U.S. national digital asset reserve, signifies a growing level of institutional credibility for the cryptocurrency.
Furthermore, from a technical viewpoint, ADA is currently in an accumulation phase. The token has formed a symmetrical triangle pattern between $0.85 and $0.98 and exhibits a golden cross in its moving averages, alongside a rising On-Balance Volume (OBV) trend. The heightened whale activity, with large investors acquiring 30 million ADA tokens in Q3 2025 during price declines while smaller holders reduced their positions, indicates a strong institutional belief in the long-term utility of Cardano. Fibonacci extension levels suggest that breaking above the $1 milestone could lead to targets of $1.20 and potentially $2.05 by the end of the year.
The surge in futures open interest for ADA to $1.77 billion, almost touching its all-time high, reflects an increase in speculative and hedging interest. The profit-to-loss ratio of 4.808 and a rise of 40% in the MVRV Z-score emphasize that most holders are in profitable positions, reducing the likelihood of mass selling. This shows how ADA remains resilient amidst regulatory uncertainty, supported by its expanding DeFi infrastructure and strategic upgrades like the Vasil hard fork and Hydra Layer 2 solution.
The delay in the ETF approval offers a strategic window for accumulation. As market participants anticipate the potential approval by October 2025, the demand for ADA might increase as the prospect of a regulated investment vehicle approaches reality. The current correction in price also presents an opportunity for investors to acquire ADA at a discounted rate, considering the cryptocurrency’s intrinsic value as indicated by TVL growth and derivatives activity.
In conclusion, while the SEC’s delays create uncertainty, they represent a necessary step towards establishing Cardano as a mainstream asset. For investors looking beyond the near future, the current scenario offers a strategic moment for entry. With technical indicators, rising TVL, and derivatives activity all pointing towards a compelling case for accumulation, Cardano’s progress in its ecosystem and regulatory advances could position it as a standout performer in the ongoing phase of institutional adoption.
