Cardano founder Charles Hoskinson hints at a potential ADA ETF as the spot crypto ETF race intensifies following the launch of Ethereum ETF products.
The cryptocurrency spot ETF race is further intensifying, with Ethereum’s spot ETF recently starting to trade. The focus now shifts to ADA.
Cardano founder Charles Hoskinson hinted at this potential development. He responded to a query from Tap Tools with a playful GIF, suggesting ADA might be in the race for the next cryptocurrency to secure a spot ETF.
— Charles Hoskinson (@IOHK_Charles) July 23, 2024
Community Reactions and Speculations
However, amid this positive speculation, Hoskinson’s response generated further discussion within the Cardano community. A member inquired about securing a stablecoin for Cardano with liquidity and an on/off ramp through a partnership with exchanges that would list Cardano native tokens. In response, Hoskinson supported this idea.
This community member later emphasized the need for partnerships, specifically mentioning USDC or USDT and a partnership with Coinbase or Binance.
Despite the positive sentiment on Cardano from some community members, others expressed concerns. One commenter highlighted the potential centralization risk posed by an ETF, which could threaten Cardano’s decentralized system.
Industry Leaders Weigh In
Tesla Motors CEO and X CTO Elon Musk was mentioned in a tweet on July 23, which claimed he had announced Cardano (ADA) as the official payment rail for X. However, this tweet was obviously edited likely for comical effect.
Are you bullish on Cardano $ADA ?!????!?! @elonmusk pic.twitter.com/2CpPmjRhzb
— TapTools (@TapTools) July 24, 2024
Further, Brad Garlinghouse, CEO of Ripple Labs, had expressed confidence in the SEC’s potential approval of spot ETFs for Cardano, along with Solana and XRP. Garlinghouse suggested that more crypto ETFs might launch following Ethereum and Bitcoin ETFs.
He acknowledged the regulatory challenges these products might face, predicting a lengthy approval process. This was observed with Bitcoin ETFs, which faced multiple rejections, and Ethereum ETFs, which experienced delays.
Cardano’s Upward Trajectory
Meanwhile, from a price perspective, Cardano has been on an upward trajectory since July 5, mirroring broader crypto market trends. Over the last two weeks, ADA prices have increased significantly, reflecting the positive market sentiment.
For instance, a chart shared by The Crypto Basic last week indicated that ADA prices had surged by 44% from the monthly low recorded on July 5. However, mixed signals have emerged as bulls and bears struggle for dominance within the Cardano ecosystem.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
