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Cardano Spot ETF: Will the SEC Approve an ADA Fund?

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Eddie Mitchell
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Key Takeaways
  • At present, there are no spot ADA ETF applications pending review with U.S. regulators.
  • Cardano (ADA) is traded within multiple index funds and institutional-grade products.
  • Tuttle Capital has also filed to create leveraged products for Polkadot (DOT), Ripple (XRP) and Solana (SOL).

The shakeup within important realms of the U.S. government has seemingly given fund managers the bullish tailwinds of inspiration needed to begin filing for spot altcoin exchange-traded funds (ETFs) and other exchange-traded products (ETPs).

Cardano (ADA) is one of the favorites considered to succeed in becoming a spot ETF, as the U.S. Securities and Exchange Commission (SEC) shifts pro-crypto.

Cardano ETFs?

Cardano is a strong contender  for spot ETF status. It’s one of the most recognizable cryptocurrencies on the market and has stood shoulder-to-shoulder with other market titans since 2017.

It is also already included in several institutional investment products that vary in shape and size.

For example, since 2021, Bitwise has been offering exposure to ADA through their physically backed ETPs. Notably, this is listed on the SIX Swiss Exchange.

In addition, ADA currently comprises 18.46%  of Grayscale’s Smart Contract Platform Ex-Ethereum Fund. It is also included  in the Hashdex Nasdaq Crypto ETF and a $1.4 billion index, namely Bitwise’s 10 Crypto Index Fund (BITW ).

This should improve the chances of the first spot ADA ETF being approved, however, there are still no guarantees.

Initial Filings

At present, there are no spot ADA ETF applications pending review with the SEC. In fact, there are zero filings to speak of, ever.

The most recent filing from Tuttle Capital is seeking approval to create a 2X Cardano Leveraged ETF. Surprisingly, it is the first time ADA has been pinned to a U.S. ETP filing.

Launch Conditions

Similarly to other spot ETF hopefuls—Ripple (XRP), Litecoin (LTC) and Solana (SOL)—a spot ADA ETF is possible, though it faces some hurdles.

As noted, it has a long track record of trading in the crypto markets and broader institutional adoption in the form of other investment products.

Presumably, it will face fewer challenges getting approved than Dogecoin (DOGE). However, it is believed that, if the SEC approved one of any spot XRP, LTC or SOL ETF applications, the rest would follow.

Fund issuers are also attempting to bring new features to Bitcoin (BTC) and Ethereum ETFs that were previously refused under former SEC Chairman, Gary Gensler.

In time, the U.S. government is expected to establish clear regulations on crypto, with pro-crypto figures heading up the SEC and other agencies.

Eyes on Cardano

After achieving an all-time high (ATH) of almost $3, and a market cap of over $94 billion in 2021, ADA tumbled significantly, following that year’s crypto crash.

After trading in the $0.30 region in the years that followed, with a market cap that meandered between $8 billion and $13 billion, ADA has since returned to form.

In November 2024, ADA jumped to highs of around $1.20 amid the “Trump Trade” euphoria that swept markets, as Donald Trump secured the U.S. Presidential election victory.

Seemingly riding high on the prospect of further ADA ETF/ETP applications, ADA is trading at $0.96 , up 4.58%, in the past 24 hours, with a market cap of $33.79 billion.

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Eddie Mitchell

Eddie has been writing news and content primarily for crypto news and industry players over the past seven years. With an eye for the bigger picture, Eddie prefers to investigate the broader implications of a story, as well as explore the weird and wonderful world of crypto. He believes blockchain has already changed the world, but observes the space overall with a skeptical and adoring eye.
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