The odds of approved Spot Cardano (ADA) Exchange Trade Fund (ETF) have skyrocketed as investors await a decision from the Securities and Exchange Commission (SEC).
Specifically, the market-imprinted odds for approval in 2025 have risen to 64%, representing a 54% increase in bullish sentiment compared to the beginning of this year, according to insights from betting platforms. Polymate.
This surge in optimism comes as the SEC approaches a significant deadline on May 29th to approve, reject or extend the Grayscale's proposed decision on the Cardano ETF.
In particular, the approval odds for the ADA ETF fluctuated between the first and second quarters. However, recent regulatory developments, including the appointment of the crypto-friendly Paul Atkins as SEC chair, have strengthened investors' trust.
SEC expanded ETF decided
On February 24th, the SEC officially launched the regulatory review process, acknowledging NYSE Arca's proposal to list and trade shares in Grayscale Cardano Trust. This led to a standard 45-day extension, pushing the decision deadline on May 29th.
Such expansions are routine, but the market seems increasingly hopeful of approval.
Currently, 72 cryptographic ETF applications are pending in the SEC. Only two inherent to Cardano are the Grayscale Cardano Trust and the Tuttle Capital 2x Cardano ETF, a leveraged product.
If approved, these ETFs mark important ADA milestones, potentially boost institutional adoption and lend out greater legitimacy for the assets.
Meanwhile, despite the controversy involving founder Charles Hoskinson, the momentum surrounding the ADA ETF continues to build.
On May 7, NFT artist Masato Alexander is said to have reached the governance group intersect, accusing him of misusing access during the Allegra hard fork in 2021 to transfer 318 million ADAs from unclaimed ICO tokens in 2017.
Despite short-term bearish feelings, the ADA remains above the 50- and 200-day moving averages (SMA), indicating a bullish trend in general.
The 14-day relative strength index (RSI) is also 50.45, a signaling neutral momentum. Despite reading the terror and greed indicators, the market emotions are also neutral and reflect greed.
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