Grayscale Withdraws Cardano ETF Plan Amid ADA Price Struggle
Grayscale has withdrawn its proposed Cardano exchange-traded fund (ETF) registration statement from the US Securities and Exchange Commission. The move was voluntary, with no indication of a rejection by the SEC. Grayscale submitted a Form RW to withdraw the registration on August 7, stating it no longer intended to proceed with the distribution of shares.
The withdrawal affects not just Cardano but also proposed Hedera and Polkadot ETFs, which were withdrawn in minutes of the Cardano filing. This suggests that Grayscale was reassessing its product offerings rather than reacting to a specific development related to ADA.
Regulated CME ADA futures have now completed six months of trading, which could satisfy one condition relevant to the SEC's generic listing framework. However, it does not automatically make ADA eligible for a spot ETF. Recent participation in these futures remains limited, with only five contracts traded on August 7 and open interest unchanged at 207.
ADA has struggled to reclaim $0.20, closing near $0.1936 after again failing to establish itself above this level. A confirmed daily close above $0.20 is crucial for extending the recovery. The Average Directional Index (ADX) stands at 24.72, indicating a developing trend.