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Investing.com-- Cardano surged to an over five-month high on Thursday after Grayscale Investments took a step toward launching a spot exchange-traded fund (ETF) tied to the token.
The cryptocurrency soared more than 17% to $0.987 by 01:56 ET, reaching its highest level since early March.
Grayscale, the world’s largest digital asset manager, registered the “Grayscale Cardano Trust ETF” in Delaware on Aug. 12, according to public filings.
The move mirrors the initial legal steps it took before applying for its Bitcoin Trust ETF (NYSE:GBTC) and Ethereum Trust ETF (NYSE:ETHE).
A spot Cardano ETF would track the price of the token directly, allowing investors to gain exposure without holding the cryptocurrency itself. The firm has not yet filed for SEC approval, but the registration indicates that a formal application could follow soon.
The token was also boosted by upbeat sentiment around Bitcoin hitting a record high of $124,436.8 on Thursday.