The Cardano ecosystem is receiving conflicting signals from the institutional investment world this week. On one hand, a major crypto asset manager has removed ADA from a flagship product. Concurrently, a fresh wave of exchange-traded fund (ETF) applications seeks to bolster the blockchain’s profile among traditional investors.
New ETF Filings Emerge as a Potential Catalyst
In a significant development, Volatility Shares has submitted updated paperwork to the U.S. Securities and Exchange Commission (SEC) for three distinct Cardano-focused investment products. The proposed funds include:
* A spot Cardano ETF, designed to track ADA’s market price directly.
* A 2x Leveraged Cardano ETF, targeting twice the daily movement of the underlying asset.
* A 3x Leveraged Cardano ETF, aiming for triple the daily gains or losses.
All three products are slated for listing on the NYSE Arca exchange. These filings join other pending Cardano-related regulatory proceedings, such as Grayscale’s ongoing Cardano Trust (19b-4) application. This activity suggests a growing pipeline of potential investment vehicles for ADA, even as it faces challenges elsewhere.
Grayscale Rebalances, Removing ADA from Multi-Asset Fund
In a separate move, Grayscale Investments has executed a scheduled quarterly rebalancing of its CoinDesk Crypto 5 ETF (GDLC). As a result, Cardano (ADA) has been eliminated from the fund’s portfolio and replaced with Binance Coin (BNB), marking BNB’s debut in this particular product.
This decision stems from the rules governing the underlying CoinDesk Large Cap Select Index. The index methodology mandates that constituent selection and weighting are based on market capitalization and liquidity metrics. Consequently, ADA’s removal primarily reflects its recent decline in ranking among major digital assets; it currently holds approximately the 10th position by market cap.
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The revised GDLC portfolio allocation (excerpt) illustrates the shift:
* Bitcoin (BTC): 74.21%
* Ethereum (ETH): 13.34%
* Binance Coin (BNB): 4.97%
* XRP (XRP): 4.68%
* Solana (SOL): 2.80%
Market Pressure Meets Ongoing Development
Amid these institutional developments, ADA’s market price remains under strain. The token is trading around $0.30, hovering close to its 52-week low of $0.29 recorded on February 2, 2026. A Relative Strength Index (RSI) reading of 32.5 indicates the asset has recently experienced substantial selling pressure.
However, development activity within the Cardano network continues unabated. Key initiatives include updates to the Ouroboros consensus mechanism, optimizations for Mithril, and progress on the Hydra layer-2 scaling solution. Furthermore, the ecosystem anticipates the Protocol Version 11 hard fork in February 2026, which is expected to enhance Plutus smart contract performance and streamline transaction rules.
Looking ahead, two near-term catalysts are poised to influence Cardano’s trajectory: regulatory decisions from the SEC on the various ETF applications and the successful deployment of Protocol Version 11 next month. These events represent the most immediate, calendar-defined potential drivers for the project, offering either a boost to institutional access and confidence or another test of investor patience.
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