Grayscale Investments has decided to withdraw its plans for exchange-traded funds (ETFs) linked to Cardano’s ADA, Polkadot’s DOT, and Hedera’s HBAR, informing the U.S. Securities and Exchange Commission (SEC) of this move late Friday.
The asset manager stated it will no longer pursue these offerings, which were never activated, and no securities were ever sold.
In a series of three filings submitted within minutes to the SEC, Grayscale indicated it “does not intend to proceed with the planned distribution” of shares for each trust. Importantly, these withdrawals were initiated by Grayscale rather than being a rejection from the SEC, and the company has not provided a specific reason for its decision. It remains possible that Grayscale could file new registration statements in the future.
Grayscale initially proposed the Cardano ETF in February 2025, with the Polkadot ETF following shortly thereafter. The registration statements for ADA and DOT were submitted on August 29, and the HBAR registration was filed on September 9.
These proposed funds aimed to be passive investment vehicles tracking the value of their respective tokens, minus fees and expenses. Grayscale confirmed that it had not yet sold any securities or distributed initial prospectuses related to these registrations.
In recent months, all three cryptocurrencies have seen significant declines. Year-to-date, ADA has fallen over 41%, while DOT has dropped by 54% and HBAR has lost 35% of its value. Since the initial filings in late February 2025, the performance has been even worse, with ADA experiencing a 70% drop, DOT an 80% decline, and HBAR also falling over 70%.
The withdrawal of these three ETFs reduces Grayscale’s pipeline of proposed single-token products. Currently, the firm lists 17 ETF products on its website, including the Bitcoin Mini Trust ETF, Ethereum Staking Mini ETF, and Hyperliquid Staking ETF.
CoinDesk has reached out to Grayscale for further comments but has yet to receive a response.
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