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The last few weeks have been turbulent for crypto investors, but now we are seeing signs of recovery in various projects. One of the most noticeable winners is Cardano (ADA), which is recording an impressive price increase.
ADA price rises by 15% after ETF news
The Cardano price is up an impressive 15.4% today and is approaching the $0.80 mark, outperforming notable competitors such as Bitcoin (BTC) and Ethereum (ETH). But what is behind this sudden rise?
The reason for this lies with Grayscale, one of the world’s largest asset managers, which recently filed an application for a Cardano spot exchange-traded fund (ETF) on the New York Stock Exchange. This crypto news has set the markets in motion.
Potential capital injection through a spot ETF
An approved Cardano Spot ETF could be a significant development as it would provide institutional investors with an easy and secure way to invest in ADA without having to purchase or manage cryptocurrencies themselves, thereby removing hurdles and enabling a significant infusion of capital.
But there is one obstacle: The Chicago Mercantile Exchange (CME) does not currently offer ADA futures. This could be problematic, as the availability of futures was a crucial prerequisite for the approval of the Bitcoin and Ethereum ETFs by the US Securities and Exchange Commission (SEC).
Solana, XRP and Dogecoin could be next
In addition to the Cardano application, Grayscale is also working on ETFs for other major crypto projects such as Solana (SOL), XRP, and Dogecoin (DOGE). Which currency is approved first could trigger strong price movements. Institutional investors are already waiting to get easy access to cryptocurrencies other than BTC and ETH.
New technical roadmap for 2025
In addition to the ETF news, there are other developments that investors are excited about. Input Output (IO), the company behind Cardano, has presented an ambitious technical roadmap for 2025. The focus is on scalability, interoperability and governance, with the ultimate goal of creating a blockchain that can support one billion users within the next five years.
If Cardano succeeds in implementing this vision, the digital currency could increase significantly in value in the coming years.
