Cardano’s ADA Surges Ahead of Bitcoin and Ether Following Grayscale ETF Filing.

Cardano’s ADA Outshines Bitcoin and Ether Following Grayscale’s Spot ETF Application

Cardano’s ADA token saw an impressive 11% surge, surpassing Bitcoin (BTC) and Ether (ETH) in performance, after Grayscale Investments filed for a U.S.-based spot ADA exchange-traded fund (ETF).

CoinDesk data shows ADA climbing to 80 cents, with the upward momentum beginning late Wednesday. Although ADA has experienced a notable rise, it remains down 36% from its December high of approximately $1.37.

Grayscale, a leading crypto asset manager, made history by applying to list the first-ever spot ADA fund on the New York Stock Exchange. A spot ETF would allow investors to gain exposure to ADA without holding the cryptocurrency directly.

Bitcoin and Ether spot ETFs launched last year in the U.S. have already attracted billions in investment, further cementing institutional interest in crypto assets.

The U.S. Securities and Exchange Commission (SEC) approved the Bitcoin and Ether spot ETFs primarily because of the assumption that CME’s surveillance systems for futures would minimize the risk of price manipulation. As a result, futures contracts have been a key prerequisite for spot ETF approval. However, the CME has yet to list ADA futures.

Despite this, the market has shown confidence, as reflected in ADA’s price movement.

Shift in Investor Focus to Layer 1 Assets

There has been a noticeable shift in the crypto market, with more focus moving from meme coins to Layer 1 assets, including Bitcoin, Ethereum, Solana, Toncoin, and Cardano. Analytics firm Santiment noted that 44.2% of social media discussions are now centered on Layer 1 assets, while meme coins like Dogecoin and Shiba Inu are experiencing a decline in attention.

According to Santiment, this shift toward Layer 1 assets signals a more stable and sustainable market environment.

Bitcoin’s Trading Range and Macro Conditions

Bitcoin continues to trade in a tight range between $95,000 and $100,000. This limited movement is attributed to concerns over trade tensions and increasing inflation expectations in the U.S. Similarly, Ether has been trading between $2,500 and $2,900, recovering from a sharp dip to $2,000 earlier in the week.

In response to macroeconomic conditions, some traders have turned to gold, pushing its price to all-time highs above $2,900 per ounce.

Despite short-term volatility, analysts believe Bitcoin’s long-term outlook remains strong.

“Bitcoin’s diminishing volatility, coupled with gold’s rise, emphasizes Bitcoin’s appeal as an alternative store of value,” Bitfinex analysts noted. “Bitcoin’s role as a hedge against inflation and currency devaluation continues to attract institutional interest, reinforcing its long-term potential.”

With over $196 billion of Bitcoin now held by ETFs, public companies, and even governments, analysts predict Bitcoin’s fixed-supply narrative will only become more compelling as fiat currencies face devaluation risks.