Grayscale Abandons Altcoin ETF Plans Amid Cooling Demand
Grayscale Investments has withdrawn its proposals for three single-asset exchange-traded funds (ETFs) tied to Cardano's ADA, Polkadot's DOT, and Hedera's HBAR. The company submitted Form RW requests to the US Securities and Exchange Commission on August 7, stating that it no longer intends to proceed with the planned distribution of these trusts' shares.
The withdrawals were sponsor-initiated under Rule 477 of the Securities Act of 1933, not a result of a formal SEC rejection. Grayscale emphasized that no securities had been issued or sold under the registrations, which had not yet become effective.
The decision to withdraw these filings signals a change in Grayscale's product priorities rather than a regulatory defeat. The company gave no detailed explanation for this move, stating simply that it no longer intends to proceed with the plans.
This move is part of a broader cooling trend in the single-asset altcoin ETF category. Other companies, including Bitwise, have also withdrawn their registration statements for similar products. Grayscale continues to operate a portfolio of roughly 17 ETF products, including its Bitcoin Mini Trust and Ethereum Staking Mini ETF.