Grayscale's Application for ETF for This Altcoin Positively Affects Token Price! Here are the Details

Cardano's ADA token, after Grayscale Investments' first spot ADA exchange-traded fund (ETF) application in the US, surpassed Bitcoin (BTC) and Etherum, showing an 11% increase.

Grayscale's ADA ETF Filing Puts Cardano Ahead of Bitcoin and Ethereum

ADA started its rally and climbed to $0.80. However, despite the recent surge, the ninth largest cryptocurrency by market cap continues to remain about 36% below its highest level in December, which was approximately $1.37.

Grayscale, a major crypto asset manager, has applied to list a spot ADA ETF on the New York Stock Exchange. If approved, this would allow traditional investors to be exposed to Cardano without directly owning the cryptocurrency.

Spot Bitcoin and Ethereum ETFs have already achieved tremendous success by attracting billions of investor funds and accelerating institutional adoption in the US.

However, a key distinction for the approval of ADA is the absence of (CME) ADA futures trading on the Chicago Mercantile Exchange - a factor that played a very important role in the approval of SEC's spot BTC and ETH ETFs.

The US Securities and Exchange Commission (SEC) based its approval of spot BTC and ETH ETFs on the futures surveillance system, which is seen as a safeguard against CME's price manipulation. Without ADA futures listed on CME, the approval process could face additional scrutiny.

However, as demonstrated by ADA's double-digit price increase following Grayscale's announcement, the market maintains its optimism.

Investors' Focus is Shifting to Layer 1 Coins

Beyond ADA, the crypto market has seen a broader shift towards investor sensitivity in meme coins such as Bitcoin, Ethereum, Solana (SOL), Toncoin (TON), and Layer 1 blockchain assets like Cardano.

According to blockchain analysis firm Santiment, discussions about Layer 1 coins now make up 44.2% of all social media conversations related to crypto, while mentions of meme coins like Dogecoin (DOGE), Shiba Inu (SHIB), and Pepe (PEPE) have decreased.