Grayscale Walks Away from Altcoin ETF Bids Amid Regulatory Uncertainty
Grayscale's Cardano ETF withdrawal has sent shockwaves through the crypto community. In an SEC filing dated August 7, Grayscale withdrew its application for a Cardano ETF, just two days before ADA cleared the regulatory hurdle to qualify for a spot cryptocurrency ETF on August 9.
The timing of the withdrawal is particularly striking, as it suggests that even established issuers like Grayscale may not be convinced that the demand for altcoin ETFs justifies the effort. Cardano wasn't the only casualty - Grayscale also withdrew its spot ETF filings for Polkadot (DOT) and Hedera (HBAR).
The market reaction to the withdrawals was muted, with none of the three tokens showing a clear directional break. ADA held near $0.20, up 4.54% on the week, while DOT and HBAR showed relatively stable price movements.