Grayscale has made a bold move in the cryptocurrency ETF race by filing a 19b-4 form with the U.S. Securities and Exchange Commission (SEC) to launch the first-ever spot Cardano (ADA) ETF. This marks the latest step in Grayscale’s effort to expand institutional access to digital assets beyond Bitcoin and Ethereum, and it’s the 60th crypto ETF filing of the year.
The filing seeks approval to introduce ADA to the U.S. spot ETF market, offering a new way for investors to gain exposure to the cryptocurrency. According to Bloomberg ETF analyst Eric Balchunas, this move is part of a growing trend, as asset managers rapidly push to secure approvals amid a shifting regulatory landscape.
The 19b-4 filing is a critical step in the ETF approval process, essentially requesting a change in the rules to allow the ETF to list on an exchange. However, even if the SEC approves the filing, Grayscale will need to submit an effective S-1 registration statement before the ETF can begin trading.
ADA Sees 11% Surge in 24 Hours
Following the announcement, Cardano’s native token, ADA, saw a notable price jump, soaring nearly 11% in just 24 hours, reaching $0.74 at the time of writing on February 11. Despite this rally, ADA remains 76% below its all-time high of $3.10, recorded in September 2021. The surge highlights growing optimism in the market surrounding altcoin ETFs, as investors increasingly look toward new opportunities in the crypto space.
Rising Confidence in Altcoin ETFs
Grayscale’s filing signals growing interest in altcoins beyond Bitcoin and Ethereum, as more asset managers seek to tap into the expanding cryptocurrency market. Bloomberg analysts James Seyffart and Eric Balchunas have raised the likelihood of other altcoin ETFs, estimating a 90% chance of approval for a Litecoin ETF and a 70% chance for Solana’s ETF. Both of these digital assets already have pending 19b-4 filings with the SEC, with decisions on their approval expected by late October.
Meanwhile, analysts have placed the odds of Ripple (XRP) and Dogecoin ETFs at 65% and 70%, respectively. These forecasts are seen as a marked shift from the stance of the SEC under former Chairman Gary Gensler, who had taken a more restrictive approach toward crypto-related products. Since Gensler’s departure, regulatory sentiment appears to be shifting, fueling expectations that more altcoin ETFs may soon gain approval.
As crypto ETFs continue to gain traction, the SEC’s decisions on these filings will likely set the tone for the future of cryptocurrency investment in traditional financial markets. Grayscale’s spot Cardano ETF filing marks a pivotal moment in that journey, as ADA’s surge and growing institutional interest point to the potential for wider adoption of altcoin-focused investment products.
