Cardano ETF Next? Analysts Speculate as ADA Yearly Losses Grow

NAIROBI (CoinChapter.com) — Cardano founder Charles Hoskinson hinted at a potential Cardano ETF following the recent launch of Ethereum ETF products. The hint came as Hoskinson responded to a query from Tap Tools, using a playful GIF, suggesting ADA might join the spot crypto ETF race. This speculation adds to the intensifying interest in cryptocurrency spot ETFs.

Ethereum’s spot ETF started trading on July 23, drawing attention to the next possible candidates. Hoskinson’s subtle hint has sparked discussions within the Cardano community. Many wonder if ADA could secure a spot ETF, aligning with the ongoing market excitement.

pic.twitter.com/DOwmo529PG

— Charles Hoskinson (@IOHK_Charles) July 23, 2024

Hoskinson’s response generated further discussion within the Cardano community. A member inquired about securing a stablecoin for Cardano with liquidity and an on/off ramp through a partnership with exchanges that would list Cardano native tokens.

Hoskinson supported this idea, emphasizing the need for partnerships with USDC or USDT and collaboration with major exchanges like Coinbase or Binance.

Is Cardano’s ETF Dream Close?

Hoskinson’s hint led to varied reactions within the Cardano community. Some members expressed enthusiasm about the potential ETF, seeing it as a positive development. However, others voiced concerns about the centralization risks posed by an ETF, which could threaten Cardano’s decentralized system.

Ripple Labs CEO Brad Garlinghouse expressed confidence in the SEC’s potential approval of spot ETFs for Cardano, Solana, and XRP. Garlinghouse suggested that more crypto ETFs might launch following Ethereum and Bitcoin ETFs.

The Ripple chief acknowledged the regulatory challenges these products might face and predicted a lengthy approval process similar to Bitcoin and Ethereum ETFs.

Elon Musk’s name was mentioned in a tweet on July 23, claiming he had announced Cardano (ADA) as the official payment rail for X. However, this tweet was edited for comical effect, highlighting the speculative nature of social media discussions surrounding Cardano.

Will a Cardano ETF Skyrocket ADA to $3.10?

Cardano’s price has improved since July 5, with ADA surging 44% from its monthly low, reflecting broader crypto market trends. Despite mixed signals from competing bulls and bears, the surge indicates positive market sentiment within the Cardano ecosystem.

If a Cardano ETF were approved, it could have a major impact on ADA’s price. Such approval might push ADA back toward its previous peak of $3.10, last seen during the 2021 bull market. As of July 25, ADA USD trades around $0.391, reflecting a recent 5.41% drop. However, this dip could present buying opportunities, particularly in the key support zone between $0.385 and $0.379.

According to IntoTheBlock’s In/Out of the Money Around Price (IOMAP) metric, approximately 161,130 addresses accumulated 1.91 billion ADA tokens at an average price of $0.385. These addresses purchased Cardano tokens within the $0.379 to $0.391 range, establishing this as a key support zone.

As the crypto spot ETF race intensifies, Cardano’s potential entry into this market remains a topic of speculation. Hoskinson’s hint has certainly added to the excitement, but concrete developments are yet to be seen.

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