Cardano Backer Details Case for SEC Approval of Spot ADA ETF

Cardano network enthusiast Dave urged the Securities and Exchange Commission (SEC) to approve spot ADA ETFs in the United States. This comes after the regulator’s announcement to delay a decision concerning these products. The SEC has repeatedly delayed the approvals of multiple altcoin ETFs citing recent rule changes and financial regulations.

Cardano’s Decentralized Governance Offers Transparency

The financial regulator monitors transparency, stability, and other factors to protect investors before approving a spot ETF. In a comment to the Commission, Dave highlighted multiple factors backing a spot Cardano product approval. According to the note, the network’s decentralized governance and on-chain mechanism show a clear and transparent path.

Mirroring decentralization are a community-driven roadmap and treasury allocations. Cardano bulls argue that the blockchain has shown sufficient financial strength, soaring to a $28.8 billion market capitalization, which proves that it meets regulators’ standards and investor protection principles.

Further, Dave lauded Cardano’s security and robust architecture over the years, describing it as resilient enough to bag a spot ETF product in the United States. Cardano has integrated 3,200 stake pools globally, ensuring no downtimes in the last decade. Supported by a clear and predictable monetary policy, its capped 45 billion ADA cools inflation concerns.

“Its clear and predictable monetary policy, including a capped maximum supply of 45 billion ADA, ensures transparency and addresses potential inflation concerns. Cardano’s global presence is complemented by a strong and growing U.S. footprint, with many contributors and projects based domestically, reinforcing its relevance to U.S. markets.” Dave wrote.

The SEC delayed its decision on Grayscale’s Cardano and Avalanche ETFs this week. Community sentiment dipped slightly with the ADA price pulling back 10% before marking gains. The wider market continues a sideways trading pattern as bullish sentiment drops over 48 hours.

Bulls Poised For ADA Rally?

Crypto traders have supported a bullish Cardano price range in the next two quarters. This follows growing institutional interest in the crypto market and a spike in decentralized finance (DeFi) activities. As mainstream finance increases its crypto exposure, many investors are backing altcoins to lead the next bull cycle.

Approval of spot ADA ETFs could be the catalyst for added bull pressure. After the launch of Bitcoin products, traditional investors increased their exposure, driving the price to new all-time highs. Cardano and other altcoins could move on a similar trajectory.