Why is Cardano's approval of a spot ETF expected to have a significant impact on its price?

Cardano's approval of a spot ETF is expected to have a significant impact on its price for several reasons:

1. **Increased Liquidity and Institutional Interest**: ETF approval would attract institutional investors, bringing significant capital and increasing liquidity to the Cardano market. This could lead to a surge in demand for ADA, potentially driving up its price.
2. **Enhanced Visibility and Credibility**: A spot ETF would provide Cardano with greater visibility and credibility in the eyes of mainstream investors, which could lead to increased adoption and valuation.
3. **Potential for Price Uptick**: The potential for a spot ETF approval could catalyze a price uptick, similar to what occurred with Bitcoin ETFs. The anticipation of such approval has already increased Cardano's monthly returns to 25.4%.
4. **Market Confidence Boost**: The recent spike in approval odds to 90% has bolstered market confidence, with traders assigning a 76% chance of approval by the U.S. SEC in 2025. This optimism is reflected in the increased betting odds, with over $374,000 wagered on the outcome.
5. **Long-Term Institutional Interest**: Despite Cardano's volatility, long-term institutional interest remains high, indicating a strong belief in the cryptocurrency's potential post-ETF.

In summary, the approval of a spot ETF for Cardano would likely lead to increased liquidity, institutional investment, and heightened market confidence, all of which could contribute to a significant price uptick.