Cardano Gains Institutional Footing Despite Grayscale ADA ETF Holdup

Cardano’s exchange-traded fund prospects took center stage this week as analysts weighed the stalled timeline against fresh signs of institutional interest. While Solana and Litecoin funds advanced through during the partial SEC shutdown, with the SEC with the objective to convert its existing Cardano Trust into a spot ETF stayed quiet. Traders have so far been trying to track the filing mechanics, index flows, and whale wallets to map Grayscale’s next move.

According to analyst Dan Gambardello, the situation around Cardano’s ETF is growing increasingly unusual. Bitwise and Canary launched the first U.S. altcoin ETFs for Solana, Litecoin, and HBAR using a “no-delay” S-1 filing strategy.

Grayscale followed a similar path for Solana’s GSOL fund. However, its Cardano ETF proposal, , passed its deadline without updates. The SEC’s partial closure has fueled uncertainty about the timing of Cardano’s ETF. Analysts suggest Grayscale could still act before the SEC fully reopens.

Gambardello noted that the extended shutdown, already one of the longest in U.S. history, could continue for weeks if Senate negotiations fail. However, optimism remains that the standoff may end soon, allowing pending filings like GADA to move forward.

Despite the delay, institutional support for Cardano continues to rise. The REX-Osprey Top 10 Crypto Index ETF recently added ADA to its portfolio, joining Bitcoin, Ethereum, and Solana among others. The index tracks major digital assets by adjusted market capitalization and rebalances quarterly to maintain liquidity standards.

This inclusion marks a milestone for Cardano, positioning it as a leading asset in institutional portfolios. Many investors see it as validation of the network’s long-term relevance and maturity within the crypto market. Consequently, Cardano’s presence in regulated financial products is expected to increase visibility among traditional investors.

Meanwhile, Cardano’s price performance has shown weakness amid heavy whale activity. As of press time trading at , analyst Ali Martinez reported that large holders sold nearly 100 million ADA within 72 hours, causing prices to fall from $0.84 to $0.64.

The selling spree reduced whale wallet balances to 3.91 billion ADA, a sign of distribution rather than accumulation. Immediate support sits near $0.637, while resistance forms around $0.67. If selling pressure eases, ADA could stabilize above $0.63 and regain short-term investor confidence.