Grayscale, through NYSE Arca, has submitted a filing under the Securities and Exchange Act of 1934 to introduce a spot Cardano exchange-traded fund (ETF). 

This filing stands out from previous ones, representing a direct ETF launch rather than a conversion. Grayscale has not yet offered a standalone investment product for ADA, marking a new chapter in its investment offerings.

Grayscale Files For Cardano ETF

The exchange submitted the 19b-4 filing to the SEC on February 10. The proposed ETF aims to offer investors regulated exposure to Cardano. Moreover, if approved, the shares will be listed under the ticker symbol “GADA.”

“While an investment in the Shares is not a direct investment in ADA, the Shares are designed to provide investors with a cost-effective and convenient way to gain investment exposure to ADA,” the filing stated.

Grayscale’s proposed fund would mark the debut of a US spot ETF for Cardano. This filing comes after Tuttle Capital Management submitted a request for ten leveraged crypto ETFs featuring an ADA fund.

“First one in US and ballpark 60th crypto ETF filed this year so far,” Bloomberg’s senior ETF analyst, Eric Balchunas, posted on X (formerly Twitter).

In addition to Cardano, Grayscale has also filed to convert other existing trusts into spot ETFs, including those for Solana (SOL), XRP (XRP), and Dogecoin (DOGE). Nonetheless, the application faces regulatory challenges. 

The SEC previously categorized Cardano as a security in its lawsuits against Binance and Coinbase, alongside XRP and Solana. These legal obstacles could delay approval, as seen with other altcoin-based ETFs.

That said, recent developments suggest a potential shift in the regulatory stance. Last week, the SEC officially acknowledged the 19b-4 filing for the Grayscale Solana ETF. This move has led analysts to speculate that it could set a positive precedent for other altcoin ETFs, including those for XRP and ADA.

The filing comes after Bloomberg analysts James Seyffart and Balchunas outlined the odds for altcoin ETF approvals. According to their analysis, Litecoin (LTC) has a 90% chance of securing an ETF approval. Furthermore, DOGE stands at 75%,  SOL is at 70%, and XRP is at 65%. Yet, how things will fare for ADA remains to be seen.

Meanwhile, after the news broke, ADA surged by 9.3% on the 24-hour chart. In daily gains, it even outperformed Bitcoin (BTC), Ethereum (ETH), and XRP.

Notably, this rise followed a period of losses. Over the past week, it was down by 4.7%. Furthermore, the last month was also bearish for the altcoin as it dipped by 26.3%. At the time of writing, ADA was trading at $0.75.

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Ethereum price is attempting to recover from the $2,500 zone. ETH might gain bullish momentum if it clears the $2,740 resistance zone.

• Ethereum started a fresh decline below the $2,700 level.
• The price is trading below $2,700 and the 100-hourly Simple Moving Average.
• There is a connecting bearish trend line forming with resistance at $2,700 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair could start a decent upward move if it settles above $2,700 and $2,740.

Ethereum Price Eyes Upside Break

Ethereum price started a fresh decline after it failed to clear the $2,920 resistance, like Bitcoin. ETH declined below the $2,800 and $2,700 support levels to move into a short-term bearish zone.

The price dipped and tested the 50% Fib retracement level of the upward wave from the $2,125 swing low to the $2,922 high. The bulls appeared near the $2,525 zone. The price is now moving higher and attempting a fresh increase above the $2,600 level.

Ethereum price is now trading below $2,700 and the 100-hourly Simple Moving Average. There is also a connecting bearish trend line forming with resistance at $2,700 on the hourly chart of ETH/USD.

On the upside, the price seems to be facing hurdles near the $2,700 level. The first major resistance is near the $2,740 level. The main resistance is now forming near $2,850 or $2,910. A clear move above the $2,910 resistance might send the price toward the $2,950 resistance.

An upside break above the $2,950 resistance might call for more gains in the coming sessions. In the stated case, Ether could rise toward the $3,000 resistance zone or even $3,050 in the near term.

Another Decline In ETH?

If Ethereum fails to clear the $2,700 resistance, it could start another decline. Initial support on the downside is near the $2,600 level. The first major support sits near the $2,525 zone.

A clear move below the $2,525 support might push the price toward the $2,440 support or the 61.8% Fib retracement level of the upward wave from the $2,125 swing low to the $2,922 high. Any more losses might send the price toward the $2,350 support level in the near term. The next key support sits at $2,240.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is losing momentum in the bearish zone.

Hourly RSI – The RSI for ETH/USD is now above the 50 zone.

Major Support Level – $2,525

Major Resistance Level – $2,700