Grayscale Walks Away from Cardano ETF as ADA Hits Eligibility Threshold
Grayscale withdrew its Cardano ETF application just two days before ADA became eligible for a spot cryptocurrency ETF. The move raises questions about Wall Street's appetite for altcoin ETFs and whether Grayscale is convinced of the demand.
The withdrawal landed on August 7, while ADA cleared the regulatory bar on August 9 after 75 days of regulated futures trading on the Chicago Mercantile Exchange. Grayscale also dropped its spot ETF filings for Polkadot (DOT) and Hedera (HBAR) in the same move.
Despite the setback, Cardano's price remained stable near $0.20, up 4.54% on the weekly chart. The market reaction was muted, suggesting that investors may have already priced in some skepticism about near-term approval odds or haven't fully digested the news yet.
The postponed vote on the CLARITY Act adds to the regulatory uncertainty, leaving issuers and investors with less visibility into the rules that would govern future spot ETF filings. Analysts point to bullish signals elsewhere in the market, but whether this optimism extends to Cardano remains an open question.