Crypto
Grayscale Withdraws Cardano, Hedera, Polkadot ETF Filings
Grayscale withdrew its Cardano, Hedera, and Polkadot ETF applications in a strategic move, avoiding an SEC rejection. Open for future filings.
20h ago 4,280
BLOCKINSIDERLoadingGrayscale withdrew its Cardano, Hedera, and Polkadot ETF applications in a strategic move, avoiding an SEC rejection. Open for future filings.
Grayscale has quietly withdrawn three of its spot crypto ETF applications, signaling a change in strategy rather than a setback from regulators.
In filings submitted to the U.S. Securities and Exchange Commission (SEC), the asset manager withdrew its proposed Cardano (ADA), Hedera (HBAR), and Polkadot (DOT) ETFs within just over three minutes, raising questions about its next move in the growing crypto ETF market.
Grayscale filed three separate Form RW submissions with the SEC to withdraw the registration statements for its proposed Grayscale Cardano Trust ETF, Grayscale Hedera Trust ETF, and Grayscale Polkadot Trust ETF.
The filings were made in quick succession. The Cardano ETF was withdrawn at 4:33 p.m. ET, followed by Hedera at 4:34 p.m. ET, and Polkadot at 4:36 p.m. ET, completing the entire process in around 190 seconds.
The company used standard withdrawal language, stating that it no longer intended to move forward with the planned share offering. It also confirmed that the registrations had never become effective and that no ETF shares had been issued or sold.
Grayscale did not provide any specific commercial or regulatory reason for the decision.
The withdrawals appear to be a strategic move, not a rejection by the SEC.
Launching a spot crypto ETF requires two separate approvals. First, the issuer must file an S-1 registration statement describing the fund. Second, the exchange planning to list the ETF must submit a 19b-4 rule change proposal, which also requires SEC approval.
In this case, the exchange filings had already been withdrawn months earlier.
NYSE Arca pulled the Cardano listing proposal in September 2025, while Nasdaq withdrew the Hedera and Polkadot proposals in November 2025.
Without an active exchange application, the S-1 filings could not move forward. Keeping them open served little purpose.
By voluntarily withdrawing the filings through Form RW instead of waiting until a regulatory deadline, Grayscale also avoided risking a formal SEC rejection. That leaves the company free to submit new applications later if market conditions or regulations become more favorable.
The move suggests Grayscale may be narrowing its focus to products with stronger demand or better approval chances. While the company has stepped away from ADA, HBAR, and DOT for now, several other crypto ETF filings remain active.
Applications linked to BNB, Bittensor (TAO), Aave (AAVE), Near Protocol (NEAR), and Zcash (ZEC) continue moving through the early stages of the regulatory process.
At the same time, Grayscale's flagship spot Bitcoin and Ethereum ETFs remain unaffected and continue to be key parts of the company's digital asset business.
The withdrawals simply reduce the number of pending ETF applications without changing Grayscale's broader presence in the crypto ETF market.
Since Grayscale is free to submit new ETF filings for Cardano, Hedera, and Polkadot at a later point, the move gives Grayscale more flexibility. That is if the SEC becomes more open to approving spot ETFs for altcoins beyond Bitcoin and Ethereum.
Meanwhile, Grayscale's ETF filings for BNB, Bittensor (TAO), Aave (AAVE), Near Protocol (NEAR), and Zcash (ZEC) remain active. Although the withdrawals may disappoint ADA, HBAR, and DOT investors, they appear to be a strategic pause rather than a permanent exit.
The company seems to be focusing on products with stronger approval chances while keeping the option to revisit these ETFs in the future.
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