Cardano (ADA) has been making waves in the cryptocurrency market, capturing the attention of institutional investors, thanks to its impressive performance in 2024. Despite a slight pullback in the broader crypto market, ADA has gained significant exposure, particularly with Grayscale, the world’s largest digital asset manager. Grayscale recently revealed that Cardano now makes up 20% of its Smart Contract Platform Ex-Ethereum Fund, placing ADA as the second-largest asset in the fund, just behind Solana (SOL).
This move signals rising institutional demand for ADA, as the fund offers indirect exposure to the native tokens of promising smart contract platforms. With the rebalancing of the fund, investors in the product are gaining increased access to Cardano. This strategic shift highlights the growing confidence in ADA’s long-term potential, especially as Cardano prepares for key upgrades throughout 2025, which could further boost its value.
Grayscale isn’t alone in recognizing the potential of Cardano. Hashdex, another prominent institutional player, has also increased ADA’s presence in the traditional financial market. The asset manager recently added Cardano to its Nasdaq Crypto ETF, which has $651 million in assets under management. ADA now comprises 1.67% of the ETF, making it the fifth-largest asset in the fund. This move further elevates ADA’s visibility, bringing it closer to mainstream institutional adoption.
Also Read: Cardano Soars 32% Before Pullback, XRP Holds Steady: Altcoin Trends Amid Bitcoin’s 2025 Rally
The growing institutional interest in Cardano is generating buzz about the possibility of a Cardano spot exchange-traded fund (ETF). While speculation mounts over the SEC’s future stance on crypto ETFs, most traders on Polymarket are cautious, with only 25% betting on the approval of a spot Cardano ETF in 2025. For such an ETF to gain approval, the SEC must resolve ongoing legal concerns over ADA’s classification as a security. If these issues are addressed, Cardano could see a significant boost in both institutional demand and overall market value.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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