ETF

Grayscale's Strategic Advancement: Introduction of Cardano and Hedera ETFs

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2025-08-18 | 5m

The cryptocurrency landscape shifted dramatically on August 12, 2025, when Grayscale Investments formally registered two new trusts in Delaware: the Grayscale Cardano Trust ETF and the Grayscale Hedera Trust ETF. This strategic maneuver marks the critical first step toward launching spot exchange-traded funds (ETFs) for Cardano (ADA) and Hedera (HBAR), potentially unlocking billions in institutional capital for these alternative cryptocurrencies. By establishing these statutory trusts—a structure mirroring Grayscale’s prior ETF launches—the asset management giant signals its confidence in a future where diversified crypto ETFs become mainstream investment vehicles. This move arrives amid a pivotal shift in the U.S. crypto regulation and surging institutional interest in blockchain networks beyond Bitcoin and Ethereum.

Why This Move Matters?

For years, cryptocurrency ETFs were synonymous with Bitcoin. Ethereum’s eventual inclusion marked progress, but Grayscale’s push into Cardano and Hedera represents a quantum leap toward legitimizing the broader altcoin universe. Unlike speculative meme coins, Cardano and Hedera are enterprise-grade platforms with distinct technological architectures and real-world utility. Cardano (ADA), trading around $0.98 following the news, is renowned for its peer-reviewed, research-driven approach. Its proof-of-stake blockchain emphasizes scalability, interoperability, and sustainability, attracting developers focused on building secure decentralized applications. Hedera (HBAR), priced near $0.2491 post-announcement, utilizes a unique hashgraph consensus mechanism for blazing-fast transactions and minimal fees. Governed by a council of global enterprises like Google and IBM, Hedera targets corporate adoption in areas like supply chain tracking and micropayments.

Grayscale’s filings unlock potential for regulated exposure to these assets. Investors, particularly institutions wary of direct crypto custody, could soon gain access through traditional brokerage accounts. This mirrors the path blazed by Bitcoin ETFs, which saw massive capital inflows upon approval. Analysts suggest ADA could surge toward $1.50—a 50%+ increase—if its ETF advances, while HBAR’s technical setup hints at a run toward $0.30.

Why Cardano and Hedera? Key Features and Use Cases

Cardano: A Research-Driven Blockchain

Cardano stands out for its academic rigor and research-driven approach to blockchain development. Key features include:

Scalability: Cardano’s Ouroboros proof-of-stake consensus mechanism ensures high transaction throughput without compromising decentralization.
Energy Efficiency: Unlike energy-intensive proof-of-work blockchains, Cardano’s design is environmentally sustainable.
Academic Peer Review: Every update to the Cardano blockchain undergoes rigorous academic scrutiny, ensuring a robust and secure network.

These attributes make Cardano an attractive asset for institutional investors seeking exposure to scalable and sustainable blockchain technologies.

Hedera: Enterprise-Grade Blockchain Solutions

Hedera differentiates itself with its unique hashgraph consensus mechanism, which offers high-speed, low-cost transactions. Its focus on enterprise use cases includes:

Supply Chain Management: Hedera’s technology enables transparent and efficient tracking of goods and services.
Tokenized Assets: The platform supports the creation and management of tokenized assets, appealing to businesses looking to digitize their operations.

Hedera’s enterprise-grade solutions position it as a strong contender for institutional adoption, further justifying its inclusion in Grayscale’s ETF strategy.

The SEC’s Role in ETF Approvals

Despite Grayscale’s decisive action, the journey to a live ETF remains arduous. The U.S. Securities and Exchange Commission (SEC) maintains a cautious stance toward crypto ETFs beyond Bitcoin and Ethereum. Earlier in 2025, the SEC delayed decisions on multiple altcoin ETFs, including:

Grayscale’s Hedera Trust (decision postponed alongside Dogecoin ETFs)
Canary Capital’s HBAR ETF (filed via Nasdaq under Rule 5711(d))
Solana ETFs (four proposals pushed to July 2025)
Cardano ETF (deadline extended to July 15, 2025)

These deferrals highlight unresolved "legal and policy issues." The SEC’s primary concerns center on market manipulation risks, custody security, and whether these assets comply with the Securities Exchange Act’s investor protection mandates. However, two recent developments offer hope:

In-kind redemption approvals for Bitcoin and Ether ETFs simplified fund operations, setting a potential precedent.
Project Crypto, a joint SEC-CFTC initiative, aims to clarify digital asset classifications, which is a longstanding industry pain point.

Bloomberg ETF analyst Eric Balchunas notes roughly 72 crypto-related ETFs are queued for SEC review. Grayscale’s Delaware registrations strategically position them to file formal S-1 or 19b-4 paperwork swiftly should regulatory winds shift.

Market Impact: Speculation Fuels Bullish Momentum

Traders wasted no time reacting. Within 48 hours of Grayscale’s Delaware registrations:

ADA surged 16%, reaching $0.98—its highest level in five months. Analysts identified a critical breakout above its 20-day EMA ($0.87), with whale accumulation and derivatives volume spiking. Ali Martinez, a prominent market analyst, projected a $1.50 target if bullish momentum holds.
HBAR jumped 5.2% to $0.2491. Technical charts show strong support between $0.2450-$0.2480, with resistance at $0.2750. A breakout could propel HBAR toward $0.30–$0.32.

Beyond price action, on-chain data reveals deepening conviction:

Over 15 billion ADA tokens haven’t moved wallets in over a year—a record high signaling long-term holder confidence.
HBAR’s exchange supply is declining, suggesting investors are moving tokens into custody for staking or holding, anticipating further gains.

Adding fuel to HBAR’s fire, BlackRock is rumored to be preparing a competing spot Hedera ETF filing. Its prior work with Hedera on tokenized money market funds underscores serious institutional validation.

The Road Ahead: Timelines and Implications

While Grayscale’s move is pivotal, patience is essential. Historical SEC approval timelines for crypto ETFs average 3–6 months. Recent streamlining efforts have shortened this to roughly 75 days for some filings. Key milestones ahead include:

Formal SEC Filings: Grayscale must submit detailed S-1 registration statements outlining custody, liquidity, and market surveillance plans.
Public Comment Periods: The SEC will solicit input on proposed rule changes for listing these ETFs on exchanges like NYSE Arca or Nasdaq.
Final SEC Vote: Commissioners must greenlight both the ETF structure and the exchange rule changes.

Approval could trigger a domino effect. Mainstream access via ETFs is likely:

Boost liquidity and reduce volatility for ADA and HBAR.
Validate altcoins as legitimate asset classes for pensions, endowments, and ETFs.
Pressure regulators to accelerate clarity for other tokens.

Conclusion: A Watershed Moment for Crypto Diversification

Grayscale’s Cardano and Hedera ETF filings mark more than just another financial product launch; they represent a strategic bet on the multi-chain future of blockchain technology. By pushing beyond Bitcoin and Ethereum, Grayscale acknowledges that value and utility in the crypto ecosystem are proliferating across diverse networks. While regulatory hurdles remain significant, shifting policies—like Project Crypto and in-kind redemption precedents—suggest the climate is thawing.

For investors, these potential ETFs promise simplified, secure exposure to innovative protocols without the complexities of direct crypto ownership. For Cardano and Hedera, they offer a path toward unprecedented institutional adoption and market validation. As the SEC deliberates, the market has already cast its preliminary vote: surging prices and record-long holder commitment signal robust confidence that these game-changing funds are not a matter of "if," but "when."

CoinCatch Team

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Disclaimer:

Digital asset prices carry high market risk and price volatility. You should carefully consider your investment experience, financial situation, investment objectives, and risk tolerance. CoinCatch is not responsible for any losses that may occur. This article should not be considered financial advice.

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