Grayscale Dumps Polkadot Spot ETF Plans Amid Market Weakness

Polkadot (DOT) saw a decline of around 3.8% over the last day, driven primarily by Grayscale's decision to scrap its planned DOT spot ETF and a mildly risk-off altcoin market.

The withdrawal of the proposed ETF registrations had a significant impact on the 'institutional ETF' narrative around DOT and other affected altcoins.

Grayscale filed withdrawal notices for ADA, DOT, and HBAR spot ETFs with the SEC, stating it 'does not intend to proceed' with those products. This effectively removed a near-term path to a regulated spot DOT ETF in the United States.

The market's response was swift, with DOT trading near $0.80 and seeing elevated volume as traders reacted to the news.