Institutional Confidence in ADA Grows Despite SEC Delay

Cardano (ADA) has surged 2%, reaching $0.87, defying the delay in the approval of the Grayscale Cardano ETF by the U.S. Securities and Exchange Commission (SEC). Despite the regulatory hold, the cryptocurrency continues to attract institutional interest, with on-chain data showing $73 million in ADA inflows in 2025, pushing institutional holdings in custody to over $900 million [1]. The price action, while volatile, has maintained a bullish structure, with higher lows on the daily chart indicating a potential for further upward movement [2].

The SEC has postponed its decision on the Grayscale Cardano ETF to October 26, 2025, citing ongoing concerns over market manipulation and custody solutions [3]. Analysts remain divided on the implications, with some suggesting that the delay has introduced uncertainty into the market. Nevertheless, ADA’s commodity status, reclassified under the U.S. Clarity Act, has bolstered its institutional appeal, aligning it with Bitcoin and Ethereum in regulatory treatment [1].

Institutional confidence in ADA is supported by robust custody solutions from major players like Coinbase and BitGo, which hold $1.2 billion worth of ADA collectively [1]. Additionally, whale activity has shown strong accumulation patterns, with investors amassing between $157 million and $161 million in ADA during recent price dips [1]. This trend underscores a long-term bullish sentiment among high-net-worth investors.

Cardano’s technological advancements also play a critical role in attracting institutional capital. The upcoming Hydra Layer 2 upgrade, designed to handle up to 1 million transactions per second, enhances scalability, making ADA a compelling option for enterprise-grade applications [1]. Moreover, strategic partnerships with entities like Brazil’s SERPRO and PUC-Rio highlight the project’s real-world utility, particularly in ESG-compliant sectors such as renewable energy [1].

Despite these positive indicators, challenges remain. The SEC’s scrutiny of crypto ETFs continues to weigh on market sentiment, with broader concerns over custody and regulatory compliance. Additionally, ADA faces execution risks from major upgrades and potential market volatility, which could affect its long-term price trajectory [1]. Analysts caution that while ADA’s fundamentals remain strong, investors should approach with prudence and remain cognizant of the regulatory environment.

The broader market context also presents opportunities for ADA. With Bitcoin experiencing a recent pullback, Cardano’s ability to maintain value while institutional interest grows suggests a shift in market dynamics. As the next key decision point for crypto ETFs approaches in late 2025, the outcome could significantly influence ADA’s institutional narrative and price action [3]. In the interim, Cardano’s position above key technical levels, including the Ichimoku Cloud, suggests underlying trend strength despite near-term bearish pressures [3].

Source:

[1] Cardano ETF: How Regulatory Clarity and Institutional ... (https://tr.okx.com/en/learn/cardano-etf-regulatory-institutional-adoption)

[2] Cardano (ADA) Price: Holding Steady at $0.86 as $1 ... (https://blockonomi.com/cardano-ada-price-holding-steady-at-0-86-as-1-resistance-challenge-approaches/)

[3] Cardano Price Prediction: Can ADA Avoid Breakdown ... (https://bravenewcoin.com/insights/cardano-price-prediction-can-ada-avoid-breakdown-below-0-82-and-target-0-90-next)