Bloomberg analysts revised the approval probability of Grayscale’s spot exchange-traded fund (ETF) proposal for the altcoin Cardano $0.63227 ( ADA ) to 75%. This news transforms Cardano into one of the most robust contenders for the upcoming wave of cryptocurrency ETFs in the US. Earlier this year, in February, Grayscale, the operator of Bitcoin $104,484 and Ethereum $0.000078 funds, had applied for the Cardano ETF through NYSE Arca. If approved, this fund will become the first exchange-traded product for Cardano.
Cardano ETF and Expectation Dynamics of Altcoin Funds
To date, only Bitcoin and Ethereum spot ETFs have been approved for trading in the US, with approvals given last year. Bloomberg analyst Eric Balchunas shared a note from his colleague James Seyffart, who not only updated approval odds but also highlighted Solana $144 (SOL) ETFs as potential frontrunners. Balchunas hinted, “Get ready for a potential Altcoin ETF Summer.”
Besides Solana, Balchunas noted some basket products might also be part of this transformative process. The revised probabilities by Seyffart include the potential approval chances for other altcoins beyond Cardano.
Other Significant Developments Surrounding Cardano
Cardano’s ecosystem is witnessing notable changes beyond ETFs. The Cardano Foundation announced that Kraken OTC has initiated ADA options trading, presenting new risk management and speculation tools for institutional investors and high-volume traders. Additionally, Cardano’s primary development team, Input Output (IO), proposed multiple enhancements for the Cardano node to increase network stability, reduce operating costs for stake pool operators (SPOs), and improve scalability.
The proposed technical updates include log-structured merge (LSM) trees, tiered pricing, and anti-grinding measures increased protection against grinding attacks. Grinding attacks refer to attempts to manipulate future leader selections within the Ouroboros consensus layer. All these improvements aim to enhance the network’s overall security and efficiency.
At the time of this reporting, Cardano’s mainnet currency, ADA coin, remains priced below one dollar. Data indicate a 5.25% drop in the altcoin’s value in the last 24 hours, trading at $0.6887.
