- Cardano price surged after Grayscale filed for a spot ADA ETF, sparking investor optimism.
- However, risks remain due to limited institutional interest in non-Bitcoin ETFs and concerns about Cardano’s development pace.
Cardano (ADA) is making headlines again. Grayscale’s spot ADA ETF filing has fueled excitement, pushing the coin’s price up by more than 50% in a week. With speculation about more firms joining the ETF race, ADA bulls believe the token could skyrocket. However, risks still loom.
Cardano Rally Fueled by Grayscale’s Spot ETF Filing
Grayscale’s decision to apply for a spot Cardano ETF has reignited investor interest. ADA surged to $0.788, marking a 150% increase from its 2024 lows. If other firms, such as Bitwise and Franklin Templeton, follow suit, demand could rise even higher.
An ADA ETF makes sense. The token has a $25 billion market cap and a strong holder base. Institutional investors could flock to ADA, pushing its price up significantly.
Risks Still Exist
Despite the optimism, Wall Street’s interest in non-Bitcoin ETFs remains low. Spot BTC ETFs have seen $40 billion in inflows, while Ethereum ETFs have barely crossed $3 billion.
One issue is staking rewards. Ethereum’s staking yield is around 3%, yet institutional investors still prefer direct holdings. Cardano offers just 2%, making it even less attractive. If the SEC allows staking rewards for ETFs, things could change.
Another concern is Cardano’s development pace. Critics call it a “ghost chain” due to its lack of major applications. Compared to Solana, Aptos, or Mantle, Cardano’s ecosystem seems underwhelming.
Will Hoskinson’s VIP Meeting Boost ADA?
ADA’s rally also coincides with an upcoming VIP meeting promised by Cardano founder Charles Hoskinson. Rumors suggest he could meet Elon Musk or tech investor David Sacks.
A partnership with Musk could be huge. He has hinted at blockchain solutions for government spending, and Cardano could fit into that vision. But Hoskinson has a history of unfulfilled promises, making the meeting’s impact uncertain.
Cardano Price Prediction
Technical indicators point to a potential breakout. ADA is now above the 50-week moving average and nearing key resistance at $0.80.
Cardano is in the second wave of the Elliott Wave cycle. If it enters the bullish third phase, the price could surge to $1.679, a 112% increase from current levels.
However, if ADA drops below $0.52, the bullish case weakens.
Grayscale’s ETF filing has put ADA back in the spotlight. If more firms jump in and Cardano proves its utility, prices could soar. But risks remain, especially with Wall Street’s lukewarm interest in altcoin ETFs. Investors should watch for regulatory updates and Hoskinson’s VIP meeting before making their next move.
