Grayscale Investments has withdrawn its ETF plans for Cardano, Polkadot, and Hedera, informing the SEC of the decision.
Grayscale Investments has officially withdrawn its plans to launch exchange-traded funds (ETFs) linked to Cardano (ADA), Polkadot (DOT), and Hedera (HBAR). This decision was communicated to the U.S. Securities and Exchange Commission (SEC) on Friday.
Withdrawal of ETF Plans
The asset management firm stated it will not move forward with the proposed ETFs, which had not yet been activated, and no securities were sold. In a series of filings to the SEC, Grayscale indicated it will not pursue the distribution of shares for these trusts. Notably, this decision was initiated by Grayscale and not as a result of SEC rejections, although the firm has not disclosed specific reasons for the withdrawal. There remains a possibility for future registration statements.
Grayscale's proposal for the Cardano ETF was made in February 2025, followed by the Polkadot ETF shortly thereafter. Registration statements for ADA and DOT were submitted on August 29, while the HBAR filing occurred on September 9.
These ETFs were intended to serve as passive investment vehicles that would track the value of their respective cryptocurrencies, minus associated fees. Grayscale confirmed that it had not sold any securities or distributed initial prospectuses related to these offerings.
All three cryptocurrencies have faced significant declines recently. Year-to-date, ADA has dropped over 41%, DOT has decreased by 54%, and HBAR has lost 35% of its value. Since the initial filings in February 2025, the situation has worsened, with ADA down 70%, DOT down 80%, and HBAR down over 70%.
The cancellation of these ETFs reduces Grayscale’s array of proposed single-token products, leaving the firm with 17 ETF products currently listed on its website, including the Bitcoin Mini Trust ETF and the Ethereum Staking Mini ETF. Grayscale has been contacted for further comments, but no response has been received yet.
