Grayscale Axes ADA ETF Filing as Cardano Clears Key Regulatory Hurdle

Grayscale dropped its proposed Cardano ETF filing just as ADA cleared a key regulatory hurdle. According to Linda, a Cardano-focused host, this timing was awkward for ADA. The host previously operated a Cardano stake pool and pointed out that Cardano's regulated futures trading had completed a required track record threshold on August 9.

This milestone could make ADA eligible for listing under the SEC's generic standards for spot crypto ETFs. However, Linda argued that Grayscale may have concluded the economics were too weak to justify launching a standalone ADA product, even if the regulatory door is now open.

Linda pointed out that eligibility is not the same as demand and that an ETF is just 'an open door' without guaranteeing price gains. She also noted that actual inflows for XRP and Solana products were significantly lower than projected figures, serving as a more realistic benchmark for ADA's potential ETF performance.