Grayscale Ditches Plans for Cardano, Polkadot, Hedera ETFs Amid Market Declines

Grayscale Investments has pulled back on its plans to introduce three new exchange-traded funds (ETFs) tied to Cardano's ADA, Polkadot's DOT, and Hedera's HBAR. The asset manager submitted withdrawal requests for the proposed single-asset trusts, stating that it no longer intends to proceed with their distribution.

The withdrawals were made on August 7 under Rule 477 of the Securities Act of 1933, which allows sponsors to withdraw filings at any time before they become effective. Grayscale emphasized that no securities had been issued or sold under the registrations, which had not yet become active.

The move is part of a broader trend in the single-asset altcoin ETF category, with several other issuers also withdrawing their applications. Since the proposed ETFs were filed in late August and early September 2025, all three underlying tokens have experienced significant price drops: ADA has fallen by over 41%, DOT by about 54%, and HBAR roughly 35% year-to-date.

Grayscale continues to operate a portfolio of around 17 ETF products, including its Bitcoin Mini Trust and Ethereum Staking Mini ETF. The withdrawals suggest the firm is taking a more selective approach to new product offerings, focusing on assets with clearer institutional demand rather than breadth for its own sake.