Grayscale Withdraws Cardano, Hedera, and Polkadot ETF Filings

Grayscale Investments has withdrawn its registration statements for proposed altcoin ETFs targeting Cardano (ADA), Hedera (HBAR), and Polkadot (DOT). The move was made without explanation, with Grayscale citing Rule 477 under the Securities Act of 1933 to remove the respective Form S-1 registration statements. This comes on the heels of Bitwise withdrawing its S-1 registration statement for a proposed Bitcoin & Ethereum ETF.

The prices of ADA and other altcoins plummeted by 2% after Grayscale's decision, with some analysts expecting ADA price could climb toward $0.47 after its breakout. However, limited whale activity may restrict momentum, according to Coinglass data. Meanwhile, HBAR has dropped more than 30% in the last two months.

The Form RWs filed by Grayscale with the U.S. Securities and Exchange Commission (SEC) requested the regulator to remove S-1 submissions for the proposed ETFs. The sponsor did not intend to proceed with the planned distribution of the trust's shares registered by the registration statement, according to the filings.