The cryptocurrency world is buzzing with speculation about the next potential crypto ETF, with Cardano’s ADA at the center of the conversation.
Following the successful launch of Ethereum’s spot ETF, the spotlight has shifted towards ADA. The excitement intensified when Cardano founder Charles Hoskinson responded to a query on the X platform from Tap Tools regarding the possibility of an ADA ETF.
His playful reply, “Fine, I’ll do it myself,” via a gif, ignited further discussions within the crypto community.
Community speculations and reactions
Hoskinson’s engaging response fueled a wave of optimism and speculation among Cardano enthusiasts.
One community member, intrigued by Hoskinson’s engagement, suggested the need for a real stablecoin for Cardano to enhance liquidity and provide an on/off ramp by partnering with an exchange that would list Cardano native tokens. Hoskinson’s positive response to this idea further boosted the community’s hopes.
The conversation also brought to light the necessity of partnerships with stablecoins like USDC or USDT and collaborations with major exchanges such as Coinbase or Binance.
While the overall sentiment remained positive, some community members expressed concerns about the potential centralization risks posed by an ETF, fearing it could compromise Cardano’s decentralized ethos.
Anticipation of more crypto ETFs
Brad Garlinghouse, CEO of Ripple Labs, shared his confidence in the potential approval of spot ETFs for Cardano, Solana, and XRP by the Securities and Exchange Commission (SEC).
He suggested that the approval of Ethereum and Bitcoin ETFs might pave the way for more crypto ETFs. Bloomberg ETF analyst Eric Balchunas echoed this sentiment, predicting a similar trend.
Garlinghouse also acknowledged the regulatory hurdles these products might face, noting that the approval process could be lengthy.
Bitcoin ETFs faced multiple rejections, and Ethereum ETFs experienced delays before finally being approved, indicating a challenging path ahead for any new crypto ETFs.
Cardano’s upcoming developments
While speculation around an ADA ETF remains unconfirmed, Cardano continues to make significant strides in other areas.
The upcoming Chang hard fork, scheduled for August 2024, has generated considerable excitement.
According to Intersect, 247 members of the Cardano community have completed the DRep onboarding process in preparation for the Chang upgrade.
This development marks a significant milestone for Cardano as the network approaches 100 million transactions.
Despite a dip from its peak, the total value locked (TVL) within the ecosystem is also showing growth. These advancements indicate that Cardano is poised for substantial progress and expansion, regardless of the ETF’s fate.
Market implications and future outlook
The potential approval of an ADA ETF could have far-reaching implications for Cardano and the broader cryptocurrency market.
ETFs are seen as a way to provide traditional investors with easier access to cryptocurrencies, potentially increasing liquidity and driving up demand.
However, the concerns about centralization and regulatory challenges cannot be ignored.
If an ADA ETF is approved, it could signal broader acceptance of cryptocurrencies by traditional financial markets, paving the way for more mainstream adoption.
On the other hand, the decentralized nature of cryptocurrencies, one of their core strengths, might be at risk if ETFs lead to increased centralization.
As the cryptocurrency landscape evolves, the introduction of new ETFs, particularly for Cardano, will be closely watched.
The outcome could significantly shape the future of Cardano and the broader crypto ecosystem, highlighting the ongoing tension between innovation and regulation.
The post Is a Cardano ETF next after Ethereum ETF’s strong start? appeared first on Invezz
