Grayscale Withdraws Crypto ETF Registrations Amid Market Slump
Grayscale Investments has withdrawn its registrations for three crypto ETFs from the US Securities and Exchange Commission (SEC). The affected funds are the Grayscale Cardano Trust ETF, the Grayscale Hedera Trust ETF, and the Grayscale Polkadot Trust ETF. This move comes after Grayscale filed Form RWs with the SEC in late August and early September last year. In its statement, Grayscale cited Rule 477 under the Securities Act of 1933 to withdraw the registration statements.
The prices of HBAR, ADA, and DOT all fell in the last 24 hours following Grayscale's ETF application withdrawals. According to a report from Watcher Guru, Grayscale confirmed that none of the registration statements were declared effective. The company stated that no securities have been or will be issued or sold pursuant to the Registration Statement or the prospectus contained therein.
The crypto market has been facing significant challenges in 2026, with new reports showing that cryptocurrencies are the worst-performing assets so far this year. Bitcoin (BTC) has dipped by 34.6%, while Ethereum (ETH) has fallen by 47%. The larger cryptocurrency market has fallen by 57.5%.