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The approval of spot Bitcoin (BTC) exchange-traded funds (ETFs) in January and – possibly even more, given it came sooner than many expected – the approval of Ethereum (ETH) ETFs in May both caused much excitement in the crypto market.
Indeed, the January approvals – after some initial staggering – proved a catalyst that helped drive many cryptocurrencies near to or even above their previous all-time highs (ATH), and while the May decision has so far had a limited impact, it is likely the recent movements are just the beginning.
Another effect of the SEC’s decisions has been the ignition of a lively discussion on which cryptocurrency will receive the next approved exchange-traded funds, with many concluding Solana (SOL) and XRP are particularly strong candidates and JPMorgan (NYSE: JPM) signaling that there is no strong candidate left in 2024.
ChatGPT explains the likely candidates for the next crypto ETF
In its search for a likely upcoming crypto ETF, Finbold consulted the most advanced model of OpenAI’s flagship artificial intelligence (AI) platform – ChatGPT-4o.
According to the AI, there are 5 cryptocurrencies that stand out among the competition: Cardano (ADA), Solana, Ripple, Binance Coin (BNB), and Polkadot (DOT).
When inquired about what makes ADA a strong candidate, ChatGPT singled out its technological strength, regulatory compliance, strong community, smart contract and dApp capabilities, and Cardano’s market position as the 5 main factors rendering it a strong competitor for the spot of the third crypto ETF.
ChatGPT sets a price target for ADA should an ETF be approved
Given the strong impact of Bitcoin’s ETFs, stemming from heightened interest, the air of increased regulatory clarity, and the growing institutional adoption, Finbold also proceeded to consult ChatGPT on what bearing might an approval of a Cardano fund have on ADA.
The AI proved generally bullish about the likely impact citing the common argument that are considered to have driven Bitcoin in the wake of the approval of its own funds, but also again pointed out Cardano’s continued technological advancements.
Starting from Cardano price today – $0.45 – ChatGPT concluded that an ADA ETF is likely to drive the price of the token to approximately $0.5461 in the immediate aftermath and towards $0.5916 as the dust settles.
Still, it is worth noting that making a precise price target based on ADA’s press time value may not be useful, given that the next crypto ETF is at least months away. Therefore, the magnitude of the change might be a better gauge and ChatGPT indeed also estimated the potential upsides in percentages.
According to the AI, fund approval is likely to quickly drive Cardano’s price up some 20%, and a total of 30% in the subsequent weeks.
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