Grayscale Abandons Altcoin ETF Plans Amid Market Turmoil
Grayscale Investments has withdrawn its applications for three proposed exchange-traded funds (ETFs) tied to Cardano's ADA, Polkadot's DOT, and Hedera's HBAR. The asset manager submitted Form RW requests to the SEC on August 7, stating it no longer intends to proceed with the planned distribution of the trusts' shares.
The withdrawals were sponsor-initiated under Rule 477 of the Securities Act of 1933, not a result of an SEC rejection. Grayscale gave no detailed explanation for the move, simply stating that the sponsor no longer intended to proceed.
The withdrawals signal a change in Grayscale's product priorities rather than a regulatory defeat. The firm continues to operate roughly 17 ETF products, including its Bitcoin Mini Trust and Ethereum Staking Mini ETF.