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As the crypto market remains in deep red and Cardano (ADA) faces significant losses, there is still a silver lining for ADA investors. The chances of a Cardano Spot Exchange-Traded Fund (ETF) are one step closer to reality, as the U.S. Securities and Exchange Commission (SEC) has officially acknowledged Grayscale’s application.

Cardano Gains Momentum in the ETF Race

For a long time, it seemed that Cardano (ADA) was being left behind in the growing ETF market. However, on February 10, the New York Stock Exchange (NYSE) Arca made a significant move by filing a 19b-4 application with the SEC.

This proposed investment vehicle would allow institutional investors to gain exposure to Cardano in a regulated environment. The hope is that, just as Bitcoin ETFs triggered massive capital inflows, a Cardano ETF could attract billions of dollars in new investments.

Why is this important?

It provides a secure, regulated way for institutions to invest in Cardano without direct custody.
It increases mainstream adoption and liquidity for ADA.
It could drive Cardano’s price higher by increasing demand from institutional investors.

The SEC Review Process Has Begun

With the application now officially acknowledged, the next step is the 21-day public comment period.

What does this mean?
During this period, market participants, analysts, and industry experts will have the opportunity to submit their opinions on the proposal.

What happens next?

By mid-March, the SEC will begin a detailed evaluation of the application.
The SEC has up to 240 days to make a final decision.
Before trading can begin, the 19b-4 proposal and the yet-to-be-filed S-1 registration form must receive final approval.

If everything moves forward as planned, Cardano could have its first spot ETF listed by late 2025.

Just a Matter of Time?

A year ago, the idea of an Altcoin ETF seemed unlikely. The SEC, under Gary Gensler, had maintained a strict stance on cryptocurrencies.

Cardano (ADA) and Solana (SOL) were classified as securities, raising concerns about their regulatory status.
The possibility of an XRP ETF was hindered by Ripple’s ongoing legal battles.

But things have changed.

The SEC is now gradually acknowledging multiple ETF applications, signaling a potential shift in regulatory attitudes. In addition to the Grayscale Cardano ETF application, the SEC has also acknowledged proposals for:

XRP ETFs
Dogecoin (DOGE) ETFs
Solana (SOL) ETFs
Litecoin (LTC) ETFs

HBAR is also in the race, but its application has yet to be officially acknowledged.

Final Thoughts – A Major Milestone for Cardano?

If approved, a Cardano Spot ETF could significantly boost ADA’s adoption and institutional demand.
The 21-day comment period is now in progress, with a final SEC decision expected within 240 days.
Other altcoins, including Solana, XRP, and Dogecoin, are also entering the ETF race.

While regulatory uncertainty remains, the approval of a Cardano ETF could mark a historic turning point for the crypto market.

Is this the beginning of a new era for Cardano? Only time will tell, but the path toward ETF approval is clearer than ever.

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Madeline

I have been drawn to technology and science fiction since I was a child. Studying IT has drawn me to the world of cryptocurrencies, where I have been working since 2014. I have learned a lot since then. And I still have a lot to learn. What fascinates me most about them is that they connect so many worlds together and the possibility of free choice. Without limits.