In the ever-evolving landscape of cryptocurrency investments, Cardano (ADA) has risen to the forefront as a prime contender for Altcoin Exchange-Traded Funds (ETFs), challenging the widely held belief that Ethereum (ETH) and Ripple (XRP) would be the first altcoins to secure regulatory approval.
Recent developments, including the Swiss-registered 21Shares Cardano ETF and its inclusion in both the OTC-traded Grayscale Digital Large Cap Fund (GDLC) portfolio and Bitwise Investments’ “Bitwise 10 Crypto Index Fund” (BITW), have fueled speculation about the imminent approval of an ADA ETF. This news diverges from conventional expectations, and enthusiasts are sharing an optimistic outlook on why Cardano is not only a promising investment but also an ideal choice for institutional investors.
Cardano enthusiasts, such as cardano_whale, emphasize the fundamental strengths of the Cardano network. At its core, Cardano is built on peer-reviewed research, earning it the reputation of being the “Linux of crypto.” Despite lacking flashy marketing, the blockchain stands on solid foundations, offering a stable, secure, and lightweight network capable of supporting a decentralized world.
The commentator points out that Cardano’s core philosophies, including the blockchain trilemma and inclusive accountability, set it apart. Notably, the standard wallet is an open-source full node, ensuring permissionless and trustless transactions. With a ledger size of 160GB, significantly smaller than other well-known chains, Cardano prioritizes decentralization.
Cardano’s revolutionary Proof-of-Stake (PoS) protocol, Ouroboros, uses extended Unspent Transaction Outputs (eUTxO) and Nakamoto consensus, resembling a programmable PoS version of Bitcoin. The analyst highlights its resilience and various security and scalability advantages, such as local state accounting and facilitation of parallelization.
The monetary policy of Cardano is another standout feature, employing a traditional disinflationary approach. With a maximum supply of 45 billion ADA, of which 35 billion is currently circulating, the distribution strategy is noteworthy. Approximately 88% of ADA went to Asian investors between 2015 and 2017. The analyst underscores the gradual reduction in block rewards based on the parameter p (currently 0.3%) in every 5-day epoch, making ADA progressively scarcer.
Decentralization plays a pivotal role in attracting institutional investors to the Cardano network. The “min attack vector” of 30 on Cardano surpasses many other chains, contributing to its appeal. Scaling on Cardano incorporates a mix of parameter changes, enhanced network and decentralized application (dApp) efficiency, Hydra, input endorsers, and more. Other factors highlighted by the analyst include DeFi innovations, security measures, developer experience, and governance improvements, with every ADA holder gaining the ability to submit a governance action for voting and ratification in 2024.
These significant developments position Cardano as an attractive option for institutional investors seeking long-term success rather than short-term gains. The existence of the Swiss-registered 21Shares Cardano ETF, its inclusion in the Grayscale Digital Large Cap Fund (GDLC) portfolio, and the feature in Bitwise Investments’ “Bitwise 10 Crypto Index Fund” (BITW) further intensify speculation around the potential approval of an ADA ETF.
In the current market scenario, ADA has experienced a notable 9% increase in the last 7 days, although it encountered a slight 2% drop in the last 24 hours. This dynamic performance, combined with the robust fundamentals and ongoing developments, underscores Cardano’s viability as a top pick for institutional investors navigating the cryptocurrency landscape.
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