Cardano ETF Acknowledged By SEC: ADA To $2 Soon?

The US SEC acknowledged Grayscale’s Cardano (ADA) ETF application filed by the New York Stock Exchange. The SEC acknowledged the filing according to a Monday, Feb. 24 release. The development is rather bullish and could lead to a rise in investor sentiment for ADA.

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Cryptocurrency Market Takes Major Beating

The cryptocurrency market took a massive dip on Tuesday after the US announced it would move forward with its tariffs for Canada and Mexico. Cardano (ADA) and every major crypto asset is trading in the red zone today. Market participants have become weary. Many investors anticipate the tariffs to negatively impact prices and inflation. The Federal Reserve has paused interest rates but is yet to announce a rate cut for 2025.

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ADA is down 12% in the daily charts, 28.2% in the weekly charts, 19.8% in the 14-day charts, and 34.8% over the previous month. The asset has maintained some gains in the yearly charts, rallying 8.5% since February 2024.

Can Cardano Hit $2 Post ETF?

An ETF approval could turn the tide for Cardano (ADA). Bitcoin (BTC) hit an all-time high after the SEC approved 11 spot BTC ETFs in January 2024. BTC’s rally trickled into the larger crypto market.

There is also a possibility that ADA will not rally after an ETF approval. The SEC also approved Ethereum (ETH) ETFs last year. Unlike Bitcoin (BTC), the ETH ETFs did not do much to push the underlying asset’s price.

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There is a high probability that the SEC will approve several crypto-based ETFs in 2025. The new US administration is quite bullish on the crypto industry. President Trump has also said that he wants the crypto industry to thrive in the US. The new management could greenlight several ETFs, including a spot ADA ETF.