Cardano News Today: ADA Skyrockets 15% as Grayscale Unveils First-Ever Cardano ETF Plan

Cardano News Today: ADA Skyrockets 15% as Grayscale Unveils First-Ever Cardano ETF Plan

There is major news for Cardano investors today after Grayscale tapped NYSE Arca to file for a Cardano ETF on their behalf.

The news sent ADA prices soaring by more than 15% on the day to reach $0.815. 

Grayscale Investments, which already runs the third largest Bitcoin ETF, has proposed the creation of the first-ever Cardano Exchange Traded Fund (ETF) – to be traded on the New York Stock Exchange.

According to information available on the NYSE website, Grayscale tapped NYSE Arca to submit the 19b-4 form with the SEC on Monday, Feb. 10.

The news ignited a rally for Cardano – a perceived Ethereum-killer, with ADA prices rallying by more than 15% in the last 24 hours to touch $0.815.

The news was a welcome relief for the ninth-largest cryptocurrency by market cap and helped put to the massive value losses it has suffered in the last three weeks with the selling pressure crashing its price towards $0.5. 

Grayscale was among the first large hedge funds to direct institutional investor attention towards cryptos when it set up the Bitcoin Trust in 2013.

This was converted into a Bitcoin ETF in 2024. It also operates three other crypto ETFs: Bitcoin Mini Trust ETF, Ethereum Trust ETF, and the Ethereum Mini ETF.

It also runs Avalanche, Solana, and Dogecoin Trusts and has filed to establish a Ripple and Solana ETF.

Can the ETF Buzz Trigger Cardano’s Rebound?

Analysts and investors expected Cardano to have a great year, with some forecasts placing its price at year-end around $2.95.

Over the last few weeks, however, Cardano prices have been stuck on a slippery slope for the last three weeks.

In fact, before today’s double-digit percentage jump, ADA price closed in the red in 8 of the last 10 days.

This saw it crash below the key support levels of $0.9 and set a local bottom around $0.65. Cardano is hovering around $0.79 at press time – a three-month low.  

The ETF buzz, coupled with the news of Cardano’s recent collaboration with Walmart, may have helped pause the bleeding, but it will take a lot of strength from the bulls to stop further slip-ups.

For starters, they have to marshal the buy pressure needed to push it above the critical support-turned-resistance level of $0.91.

This, alongside improving macro-factors, would help ADA climb above the $1 mark, chart a path towards a new ATH, and possibly back on top investor picks for the best cryptos to buy in 2025.