TL;DR

The SEC acknowledged Grayscales application to introduce a spot ADA ETF in America.  The asset manager also seeks to convert its XRP Trust into an ETF, with similar filings pushing the approval odds to 74% before the end of 2025.

The Chances Are Rising

Over the past few months, there has been a bunch of companies displaying their intentions to launch spot crypto exchange-traded funds (ETFs) in the United States. Among the most active entities in this field is the worlds largest digital asset manager Grayscale. 

The organization officially filed for a Cardano (ADA) exchange-traded fund with the New York Stock Exchange on February 10. Several hours ago, the SEC acknowledged Grayscales application. The move marks the beginning of the regulatory review process, which usually lasts 240 days. 

The SECs acknowledgment has increased the chances of the product seeing the light of day before the end of 2025. According to Polymarket, the odds have risen from 52% on February 24 to 66% as of now. 

A potential green light will allow investors to gain exposure to ADA without purchasing it from exchanges or worrying about self-custody methods. This could have a positive effect on the price in the long term.

As of now, though, Cardanos native token is not in the best shape. It trades at around $0.64 (per CoinGeckos data), representing a 12% daily decline. Its drop aligns with the broader collapse of the cryptocurrency market, where Bitcoin (BTC) crashed below $90,000, while Ethereum (ETH) dipped under $2,400.

As CryptoPotato reported, the sectors decline negatively affected some over-leveraged traders. The total value of liquidated positions in the last 24 hours surged past $1 billion.

Grayscales XRP-Related Efforts

The entity also recently sought regulatory approval to convert its existing XRP Trust into an exchange-traded fund. Earlier this month, the SEC acknowledged that application, triggering a substantial uptick in the price of the underlying asset. 

Other well-known companies willing to introduce an XRP ETF in America include 21Shares and Bitwise. The Commission has also acknowledged their filings.

According to numerous industry participants the launch of such an investment vehicle might be just around the corner, whereas Ripples CEO has asserted multiple times that this is inevitable. The chances of an approved XRP ETF in the US before the end of 2025 currently stand at 74% (per Polymarket).