Key Takeaways
- • Grayscale Investments withdrew SEC registration filings for three single-token ETFs (Cardano, Polkadot, and Hedera) on August 7, 2026, submitted within 190 seconds, with no securities issued or sold prior to withdrawal.
- • The three tokens targeted by the abandoned ETFs have experienced severe year-to-date declines: ADA down 41%, DOT down 54%, and HBAR down 35%, with steeper losses (70–80%) since late February 2025.
- • Original registration statements for ADA and DOT were filed August 29, 2025, while Hedera's followed September 9, 2025, following earlier proposals from February 2025; none reached effective status before withdrawal.
- • Grayscale provided no explicit rationale for the retreat in its Form RW filings to the SEC, stating only that the firm "does not intend to proceed with the planned distribution" of shares.
- • The withdrawal narrows Grayscale's pipeline of proposed single-token cryptocurrency ETF products at a time when institutional appetite for altcoin exposure through regulated vehicles remains constrained by market underperformance.
Summary
Grayscale Investments has withdrawn its registration statements for three proposed cryptocurrency ETFs tracking Cardano (ADA), Polkadot (DOT), and Hedera (HBAR), ending the company's efforts to bring these single-token funds to market. The withdrawals, submitted via Form RW filings to the Securities and Exchange Commission on August 7, 2026, were completed within 190 seconds. Notably, none of the three registration statements had achieved effective status, no securities were issued or sold, and no preliminary prospectuses were distributed to investors.
The three ETF proposals represented a significant initiative within Grayscale's product roadmap. Initial registration statements for ADA and DOT were filed on August 29, 2025, following earlier proposals from February 2025. Hedera's registration statement arrived later on September 9, 2025. Each fund was designed as a passive product structured to track the value of its respective token after accounting for fees and expenses. The rapid, sequential withdrawal—executed in less than three minutes—suggests a coordinated decision rather than staggered reassessments.
While Grayscale did not cite specific reasons for the retreat in its SEC filings, the withdrawal occurs amid sustained market pressure on all three tokens. Year-to-date performance through August 2026 reflects significant weakness: ADA has declined more than 41%, DOT has lost 54%, and HBAR is down 35%. The declines are even steeper when measured from late February 2025, with ADA falling approximately 70%, DOT declining roughly 80%, and HBAR losing more than 70%. This extended period of underperformance may have reduced institutional demand signals or altered Grayscale's cost-benefit analysis regarding market timing and distribution feasibility.
The retreat represents a notable contraction in Grayscale's pipeline of single-token cryptocurrency ETF products at a critical juncture for institutional adoption of altcoin exposure through regulated vehicles. The decision underscores the sensitivity of cryptocurrency product launches to underlying asset volatility and market sentiment, particularly for non-leading tokens where institutional participation remains limited relative to Bitcoin and Ethereum derivatives.
The three ETF proposals represented a significant initiative within Grayscale's product roadmap. Initial registration statements for ADA and DOT were filed on August 29, 2025, following earlier proposals from February 2025. Hedera's registration statement arrived later on September 9, 2025. Each fund was designed as a passive product structured to track the value of its respective token after accounting for fees and expenses. The rapid, sequential withdrawal—executed in less than three minutes—suggests a coordinated decision rather than staggered reassessments.
While Grayscale did not cite specific reasons for the retreat in its SEC filings, the withdrawal occurs amid sustained market pressure on all three tokens. Year-to-date performance through August 2026 reflects significant weakness: ADA has declined more than 41%, DOT has lost 54%, and HBAR is down 35%. The declines are even steeper when measured from late February 2025, with ADA falling approximately 70%, DOT declining roughly 80%, and HBAR losing more than 70%. This extended period of underperformance may have reduced institutional demand signals or altered Grayscale's cost-benefit analysis regarding market timing and distribution feasibility.
The retreat represents a notable contraction in Grayscale's pipeline of single-token cryptocurrency ETF products at a critical juncture for institutional adoption of altcoin exposure through regulated vehicles. The decision underscores the sensitivity of cryptocurrency product launches to underlying asset volatility and market sentiment, particularly for non-leading tokens where institutional participation remains limited relative to Bitcoin and Ethereum derivatives.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.