Cardano is a unique blockchain project that combines smart contracts capabilities with an UTXO model, instead of the account model used by Ethereum and most other smart contract blockchains. Cardano has also differentiated itself from many other projects in the crypto and blockchain space by implementing peer-reviewed research and other approaches modeled on scientific philosophy.
The Cardano blockchain’s native asset ADA has displayed significant staying power since its launch in 2017, as it’s currently the eighth-largest cryptocurrency by market capitalization.
As a highly liquid and well-established cryptocurrency, ADA is among the likeliest crypto assets to become tradable through ETFs (exchange-traded funds) in the near future. The odds for a Cardano ETF seem especially high at the moment given the crypto-friendly turn the SEC (Securities and Exchange Commission) has taken under the Trump administration.
In this article, we’ll explain everything we currently know about Cardano ETFs, with a focus on the United States market.
Key highlights:
- A Cardano ETF would allow investors to gain exposure to ADA without having to navigate crypto exchanges or manage private keys.
- There are currently no Cardano ETFs trading in the United States market.
- Grayscale applied for the first Cardano ETF in February of 2025.
- It could take until October 2025 for the SEC to officially approve or reject Grayscale's Cardano ETF application.
- There is currently only one active Cardano ETF application, compared to 5 each for XRP and Solana.
Cardano ETF applicants
Currently, there is only one active Cardano ETF application in the United States. Crypto asset manager Grayscale filed for the Grayscale Cardano Trust product on February 10, 2025, and the filing was acknowledged by the SEC on February 24, 2025.
By acknowledging the filing, the SEC gave itself a 240-day window to review the application and decide to approve or reject it. This means that we will see a decision from the SEC regarding Grayscale’s Cardano ETF application before the end of October 2025.
The fact that only one asset manager has filed for a Cardano ETF so far might be a sign that asset managers are anticipating low demand for such an investment product. For context, five different asset managers have filed to launch an XRP ETF, and the same number of asset managers also vying for a Solana ETF.
Why is the Cardano ETF a big deal?
A Cardano ETF is a financial instrument that trades on a stock exchange and holds ADA cryptocurrency on behalf of investors. Like stocks, investors can buy and sell shares of the ETF.
The returns from investing in a Cardano ETF should, in theory, closely align with those of directly holding ADA in a wallet or on a cryptocurrency exchange. However, since ETF issuers charge management fees, holding a Cardano ETF would likely lead slightly lower returns compared to owning ADA outright.
A Cardano ETF would provide a simplified way for investors to gain exposure to ADA without the need to use cryptocurrency exchanges or manage private keys with a Cardano wallet. Additionally, this type of investment vehicle would make it easier for institutional investors to allocate capital to ADA, reinforcing its legitimacy as an asset and potentially attracting more cautious investors.
Cardano ETPs are already available in Europe
Although most of the attention from crypto investors is currently focused on the United States (which isn’t too surprising given the sheer size of its market), we should acknowledge that similar investment products tracking the price of ADA are already available to investors in Europe.
In the European market, these products are called ETPs (exchange-traded products). From the perspective of the average investor, they are very similar to the crypto ETFs in the United States market.
Investors can buy shares in a Cardano ETP through their stockbroker to gain exposure to ADA without having to worry about navigating crypto exchanges or managing their private keys, but have to pay a management fee in exchange for the convenience.
Here are the Cardano ETPs that are currently available to European investors:
Cardano ETF launch date – When can we expect the first products to be approved?
The SEC acknowledged the first Cardano ETF application on February 24, 2025. Since the SEC has a 240-day window to approve or reject applications, it could take until October 2025 before the SEC officially approves or rejects the application.
Currently, Grayscale is the only asset manager that is pursuing a Cardano ETF. If we see other asset managers applying to list similar products, it’s likely that they will be approved (or rejected) in a batch, with multiple Cardano ETFs becoming available at the same time. This was the case when the SEC approved the first spot Bitcoin ETFs and Ethereum ETFs.
The bottom line
While a Cardano ETF would certainly be positive for ADA overall, investors should be cautious with their expectations. Even if we see a Cardano ETF launch in 2025, demand for it might be too low to make a meaningful positive impact on the price.
The largest asset managers like BlackRock and Fidelity are yet to file for any altcoin ETFs, suggesting that they foresee low demand for such products. In the case of Cardano, only one asset manager (Grayscale) has filed to list a Cardano ETF, while Solana and XRP have 5 active applications each.
Regardless, a Cardano ETF would still legitimize ADA as a crypto asset and provide a solid foundation for capital to flow into ADA over the long term.
