Grayscale Withdraws Plans for Three Crypto ETFs Amid Market Pressure

Grayscale Investments has retreated from three planned cryptocurrency exchange-traded funds (ETFs) tied to Cardano (ADA), Polkadot (DOT), and Hedera (HBAR). The company filed withdrawal requests with the SEC on Friday, indicating it no longer intends to proceed with the distribution of shares for each trust. This move comes as ADA, DOT, and HBAR have posted significant losses in 2026, with ADA down over 41%, DOT falling 54%, and HBAR losing 35%.

The withdrawal requests were submitted within four minutes of each other late Friday, citing that the registration statements had not become effective, no securities had been issued or sold, and no preliminary prospectus had been distributed. This means investors never received shares in any of the three funds. The withdrawals narrow Grayscale's pipeline of proposed single-token funds while the affected assets continue to experience market pressure.

Grayscale still lists 17 ETF and ETP products on its website, including those tied to Bitcoin (BTC) and Ethereum (ETH). Those existing products remain unaffected by this move. It is worth noting that Grayscale did not cite the significant losses of ADA, DOT, and HBAR as the reason for withdrawing the proposals.