Key Takeaways
- • Grayscale Investments withdrew three ETF registration statements for Cardano (ADA), Polkadot (DOT), and Hedera (HBAR) in sponsor-initiated filings submitted to the SEC on August 8, 2026, citing no intention to proceed with the planned distributions.
- • The withdrawal removed a significant near-term catalyst for Cardano; ADA declined more than 2% following the announcement and currently trades near $0.196, struggling below the $0.20 resistance level.
- • All three tokens have experienced substantial losses year-to-date: ADA down 41%, DOT down 54%, and HBAR down 35%, with sharper drawdowns since the initial filings in February 2025 (ADA -70%, DOT -80%, HBAR -70%).
- • Grayscale's decision was sponsor-initiated rather than an SEC rejection, and the asset manager provided no specific rationale; the company retains the option to resubmit registrations in the future.
- • The registrations had not reached effectiveness, and no securities were issued or sold under any of the three proposals, limiting direct market impact but signaling reduced institutional confidence in near-term ETF approval prospects for these assets.
Summary
Grayscale Investments has withdrawn its proposed exchange-traded fund registrations for three major cryptocurrency assets—Cardano (ADA), Polkadot (DOT), and Hedera (HBAR)—in three separate filings submitted to the U.S. Securities and Exchange Commission late Friday, August 8, 2026. Through these sponsor-initiated requests, Grayscale informed the SEC that it "does not intend to proceed with the planned distribution" of shares in the corresponding trusts. Notably, these withdrawals were not SEC rejections but rather voluntary sponsor decisions; Grayscale did not disclose its reasoning for the move.
Grayscale's ETF filing strategy for these assets began in early 2025. The company submitted its initial Cardano ETF proposal in February 2025, followed by its Polkadot filing later that month. Registration statements for ADA and DOT were filed on August 29, 2025, with the HBAR registration statement submitted on September 9, 2025. The proposed funds were structured as passive vehicles designed to track the value of their respective tokens following the deduction of management fees and expenses. The SEC had not approved any of these registrations; none had reached effectiveness, and Grayscale had not sold securities or distributed preliminary prospectuses under any of the three registrations.
The withdrawal announcement coincided with downward pressure on Cardano's price. ADA declined more than 2% in the 24 hours following the filing announcement and is currently trading near $0.196, below the $0.20 threshold where it has faced resistance. Market participants viewed the ETF filing as a near-term catalyst for institutional adoption and price appreciation; its withdrawal removes this potential support.
The three tokens have experienced significant declines over the period since the initial filings. Year-to-date performance shows ADA down 41%, DOT down 54%, and HBAR down 35%. More dramatically, since late February 2025 when the original filings were submitted, the drawdowns have been steeper: ADA experienced a 70% decline, DOT saw an 80% drop, and HBAR fell more than 70%. These sustained losses may have influenced Grayscale's strategic decision to pause its ETF expansion into this segment of the cryptocurrency market.
Because the withdrawals were sponsor-initiated rather than regulatory rejections, Grayscale technically retains the option to submit new ETF registration statements for these assets in the future. However, the decision underscores hesitation within the institutional asset management community regarding near-term approval prospects and market demand for spot ETF products tracking these specific tokens.
Grayscale's ETF filing strategy for these assets began in early 2025. The company submitted its initial Cardano ETF proposal in February 2025, followed by its Polkadot filing later that month. Registration statements for ADA and DOT were filed on August 29, 2025, with the HBAR registration statement submitted on September 9, 2025. The proposed funds were structured as passive vehicles designed to track the value of their respective tokens following the deduction of management fees and expenses. The SEC had not approved any of these registrations; none had reached effectiveness, and Grayscale had not sold securities or distributed preliminary prospectuses under any of the three registrations.
The withdrawal announcement coincided with downward pressure on Cardano's price. ADA declined more than 2% in the 24 hours following the filing announcement and is currently trading near $0.196, below the $0.20 threshold where it has faced resistance. Market participants viewed the ETF filing as a near-term catalyst for institutional adoption and price appreciation; its withdrawal removes this potential support.
The three tokens have experienced significant declines over the period since the initial filings. Year-to-date performance shows ADA down 41%, DOT down 54%, and HBAR down 35%. More dramatically, since late February 2025 when the original filings were submitted, the drawdowns have been steeper: ADA experienced a 70% decline, DOT saw an 80% drop, and HBAR fell more than 70%. These sustained losses may have influenced Grayscale's strategic decision to pause its ETF expansion into this segment of the cryptocurrency market.
Because the withdrawals were sponsor-initiated rather than regulatory rejections, Grayscale technically retains the option to submit new ETF registration statements for these assets in the future. However, the decision underscores hesitation within the institutional asset management community regarding near-term approval prospects and market demand for spot ETF products tracking these specific tokens.
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