ADA Price Rebounds as Three Cardano ETFs Near Launch
After weeks of volatility and negative trends, the ADA token price is showing fresh signs of strength as interest from big financial players continues to grow. Following a period of weakness, the ADA price has started to rebound, helped by rising optimism around Cardano ETFs.
This optimism is largely driven by reports that Volatility Shares has updated its filing with the US Securities and Exchange Commission (SEC) to launch three Cardano-based exchange-traded funds. If approved, these Cardano ETFs would give investors easier access to ADA through regulated markets. This could potentially boost liquidity and confidence around the token.
As a result, experts and market watchers believe that the upcoming ETF launches could play a key role in shaping ADA’s price outlook in the near term.
Cardano ETF Buzz Fuels ADA Price
Lucas Macchiavelli, a renowned Cardano investor and enthusiast, took to X to share insights on a major update within the ADA ecosystem. As per the X post, Volatility Shares is launching three Cardano ETFs.
Reportedly, Volatility Shares, a financial giant that manages more than $7 billion in investor assets, has updated its filing with the US SEC to launch three Cardano exchange-traded funds. These include a spot Cardano ETF, a 2x leveraged ETF, and a 3x leveraged ETF.
As per the SEC filing, these three Cardano ETFs are expected to trade on NYSE Arca, a major US exchange, known for listing a wide range of crypto investment products. If launched on NYSE Arca, it will make ADA more accessible for traditional investors and traders who do not want direct exposure to the ADA token.
In response to this filing, the ADA price has seen a slight, but notable rebound. The token has been trading in the red zone for the past few days, aligning with the broader crypto market downturn.
However, the altcoin has recovered slightly today, reaching $0.2971. Despite a 1.07% daily hike, the token is still down 15% and 25% in a week and a month, respectively. While the ADA price has turned green, the traders’ sentiment is largely negative. This is evident in the 41% decline in the 24-hour trading volume, which is currently at $590 million.
Unveiling Volatility Shares’ Three Cardano ETFs
Each ETF is reportedly designed for a different type of investor. For instance, the spot Cardano ETF would simply follow ADA’s market price, rising and falling along with it, which makes it the most straightforward and lower-risk option. This type of ETF is generally seen as more conservative as it closely reflects the actual value of the asset.
The leveraged ETFs, on the other hand, are aimed at investors looking for higher potential returns and are willing to take on more risk. The 2x Leveraged Cardano ETF is designed to double the ADA price’s daily movements. This means that if the ADA price rises by 6% in a day, the Cardano ETF would aim to deliver 12% gain. However, the same rule applies when the prices fall, making it riskier than regular ETFs.
The 3x Leveraged Cardano ETF takes this step further by tripling ADA’s daily gains or losses, which brings much higher volatility. Because of this feature, it is mainly suited for experienced traders who focus on short-term market moves rather than long-term investing.
