Grayscale Withdraws Crypto Fund Applications Amid Regulatory Hurdles

Grayscale Investments has withdrawn its applications to launch three cryptocurrency funds in the US. The funds were tied to Cardano, Polkadot, and Hedera.

The decision was driven by Grayscale's intention not to proceed with the planned offering of shares for these trusts. This move comes after the company filed registration statements with the SEC on August 29 and September 9, but none of them became effective.

No securities were issued or sold under these applications, and no preliminary prospectuses were distributed. Grayscale's decision is part of a larger trend in the cryptocurrency market, where several funds have been withdrawn due to regulatory hurdles.