Grayscale Withdrawal Sparks 3.18% HBAR Price Drop

Grayscale's decision to withdraw its planned Hedera ETF has led to a decline in the price of HBAR, with a 3.18% drop over the last 34 hours.

The company filed sponsor-initiated withdrawals with the SEC for ETF products tied to Cardano (ADA), Hedera (HBAR), and Polkadot (DOT), stating it 'does not intend to proceed with the planned distribution of shares.'

This move, voluntary under SEC Rule 477, dampened near-term optimism for an HBAR ETF, contributing to a 2% decline in HBAR's price.

The broader crypto market experienced a mild downturn, with total crypto market cap declining by about 1.17%, but HBAR's underperformance compared to the altcoin market suggests that the ETF withdrawal had a specific negative impact on HBAR.