Cardano (ADA) has change into a staple of all major crypto exchange-traded index products, in accordance with Bloomberg ETF analyst James Seyffart, who called the asset an unexpected common denominator in institutional crypto exposure.
Cardano is included in all reviewed crypto index products. No standalone spot ETF yet
In a recent post on The commentary comes at a time when issuers are increasingly expanding beyond single-asset crypto ETFs into diversified index-based offerings.
Source: X
Since January 2024, the crypto ETF market has grown rapidly, with issuers launching each spot single-asset products and multi-asset index funds. While Bitcoin and Ethereum ETFs have seen essentially the most inflows thus far, Seyffart said crypto index ETFs are more likely to attract more capital over time as institutions seek broader exposure.
He described index products as a category that may evolve in “many styles and sizes,” pointing to the 21Shares FTSE Crypto 10 Ex-Bitcoin ETF (TXBC) for example of how future institutional allocations could evolve by reducing reliance on Bitcoin's dominance.
Cardano is included in all reviewed crypto index products
Seyffart said Cardano stood out in his review since it was included in all six crypto exchange-traded index products he analyzed. None of the opposite digital assets showed the identical level of consistency across all index constructions.
The six products that contain ADA are:
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CoinShares Altcoins ETF (DIME)
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Bitwise 10 Crypto Index Fund (BITW)
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Grayscale Digital Large Cap Fund (GDLC)
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Hashdex Nasdaq Crypto Index ETF (NCIQ)
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21Shares FTSE Crypto 10 ETF (TTOP)
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21Shares FTSE Crypto 10 Ex-Bitcoin ETF (TXBC)
Cardano's allocation varies depending on the fund strategy. For large-cap products comparable to GDLC, BITW and TTOP, ADA has a weighting of 0.6%. Its allocation increases to 0.8% in Hashdex's NCIQ and 10% in CoinShares' altcoin-focused DIME. At TXBC, which excludes Bitcoin to diversify exposure, Cardano makes up 2% of the portfolio.
Among the index products mentioned, BITW stays the most important with $1.08 billion in assets under management. GDLC follows with $536.5 million, while NCIQ manages $123.8 million. The remaining products are significantly smaller: DIME holds $1.8 million, TTOP about $900,000 and TXBC about $800,000.
No standalone spot ETF yet
Despite Cardano's repeated inclusion in index ETFs, the asset still lacks a standalone spot ETF within the US
Bloomberg ETF analyst Eric Balchunas said in October that three Cardano ETF applications remain under review by the U.S. Securities and Exchange Commission. Grayscale is among the many issuers looking for approval. The SEC confirmed Grayscale's Cardano-related 19b-4 filing in February, which initially raised approval expectations earlier this 12 months.
Those expectations have since declined. Current estimates now place the probability of approval at around 3%, suggesting that a dedicated ADA spot ETF is unlikely within the near future.
