Grayscale Abruptly Axes Altcoin ETF Plans in Record Time

Grayscale has withdrawn its registration for three altcoin exchange-traded funds (ETFs) in a swift and mysterious move. The firm filed to list Cardano, Hedera, and Polkadot ETFs on August 7, but pulled the applications just 190 seconds later.

The withdrawals were made between 4:33 p.m. and 4:36 p.m. ET, with each filing containing identical language stating that Grayscale does not intend to proceed with the proposed distribution of shares.

This decision marks a reversal from earlier this year when Grayscale filed registration forms for the Cardano and Polkadot trusts in the spring. The underlying exchange listing proposals had already been pulled once before by the exchanges themselves, with NYSE Arca withdrawing its Cardano listing proposal last September and Nasdaq withdrawing its Polkadot and Hedera proposals just a couple of months later.

Grayscale has not issued a public statement explaining the decision, leaving possibilities ranging from muted investor demand for single-asset ADA, HBAR, and DOT products to a strategic decision to concentrate resources on higher-priority filings.