Cardano soared to a five-month high on Thursday after Grayscale Investments took a step towards launching an exchange-traded fund (ETF) based on this token.
The cryptocurrency surged more than 17%, reaching its highest level since early March.
Grayscale, the world's largest digital asset manager, registered the 'Grayscale Cardano Trust ETF' in Delaware on August 12, according to public documents.
This move mirrors the initial legal actions that the company took prior to filing for the Bitcoin Trust ETF (New York: GBTC) and the Ethereum Trust ETF (New York: ETHE).
The spot ETF for Cardano will directly track the price of the token, allowing investors to access the asset without the need to own the cryptocurrency itself. The company has not yet filed for SEC approval, but the registration indicates that a formal application may follow soon.
The token also received support due to positive sentiments surrounding Bitcoin, which reached a record high of $124,436.8 on Thursday.
