Key Takeaways
- • Grayscale Investments withdrew three cryptocurrency ETF registration statements for Cardano (ADA), Polkadot (DOT), and Hedera (HBAR) from the U.S. SEC on August 7, 2026, via voluntary Form RW filings, stating it "does not intend to proceed with the planned distribution" of shares for each trust.
- • The SEC accepted all three withdrawal requests within 190 seconds on Friday afternoon (Cardano at 4:33:37 p.m. ET, Hedera at 4:34:55, and Polkadot at 4:36:47), confirming these were sponsor-initiated withdrawals rather than SEC rejections; no securities were issued or sold under any of the registrations.
- • Original registration filings occurred between August 29 and September 9, 2025, with the proposed funds designed as passive vehicles tracking token values after fees and expenses; the year-to-date performance of all three tokens has declined significantly (ADA down 41%, DOT down 54%, HBAR down 35%).
- • The withdrawals were voluntary and unrelated to SEC rejection, with CryptoRank and other sources indicating the move reflected market conditions and strategic recalibration rather than regulatory impediment.
Summary
Grayscale Investments formally withdrew its registration statements for three proposed cryptocurrency ETFs on August 7, 2026, marking a strategic retreat from exposure to Cardano, Polkadot, and Hedera tokens. The asset manager submitted three Form RW filings—Registration Withdrawal Requests under SEC Rule 477—to terminate the registration statements for these products after none had become effective and no securities had been issued or distributed. According to CoinDesk, Grayscale explicitly stated that "none became effective, and no securities were issued or sold" under the registrations.
The three ETF filings had been submitted to the SEC between late August and early September 2025. CoinDesk reported that the Cardano ETF proposal was initiated in February 2025, with Grayscale filing ADA and DOT registration statements on August 29, 2025, and the HBAR registration on September 9, 2025. Each proposed fund was structured as a passive vehicle designed to track the value of its respective underlying token, net of fees and expenses. The withdrawals were processed with remarkable efficiency: CryptoRank documented that the SEC accepted all three withdrawal requests within 190 seconds on Friday afternoon, with EDGAR timestamps showing Cardano accepted at 4:33:37 p.m. ET, Hedera at 4:34:55, and Polkadot at 4:36:47.
The timing and market context suggest these withdrawals reflect broader conditions in the altcoin sector rather than regulatory rejection. According to CoinDesk, year-to-date performance of all three tokens has been substantially negative: Cardano's ADA is down more than 41%, Polkadot's DOT has lost 54%, and Hedera's HBAR has declined 35%. Multiple sources, including CryptoRank and Phemex, confirmed that the Form RW filings were voluntary withdrawals initiated by the sponsor—a procedural distinction indicating Grayscale made an independent business decision rather than responding to SEC opposition.
This withdrawal represents a notable contraction in Grayscale's cryptocurrency ETF expansion strategy, occurring against a backdrop of challenging digital asset valuations and market conditions that have likely affected demand for new product launches in this sector.
The three ETF filings had been submitted to the SEC between late August and early September 2025. CoinDesk reported that the Cardano ETF proposal was initiated in February 2025, with Grayscale filing ADA and DOT registration statements on August 29, 2025, and the HBAR registration on September 9, 2025. Each proposed fund was structured as a passive vehicle designed to track the value of its respective underlying token, net of fees and expenses. The withdrawals were processed with remarkable efficiency: CryptoRank documented that the SEC accepted all three withdrawal requests within 190 seconds on Friday afternoon, with EDGAR timestamps showing Cardano accepted at 4:33:37 p.m. ET, Hedera at 4:34:55, and Polkadot at 4:36:47.
The timing and market context suggest these withdrawals reflect broader conditions in the altcoin sector rather than regulatory rejection. According to CoinDesk, year-to-date performance of all three tokens has been substantially negative: Cardano's ADA is down more than 41%, Polkadot's DOT has lost 54%, and Hedera's HBAR has declined 35%. Multiple sources, including CryptoRank and Phemex, confirmed that the Form RW filings were voluntary withdrawals initiated by the sponsor—a procedural distinction indicating Grayscale made an independent business decision rather than responding to SEC opposition.
This withdrawal represents a notable contraction in Grayscale's cryptocurrency ETF expansion strategy, occurring against a backdrop of challenging digital asset valuations and market conditions that have likely affected demand for new product launches in this sector.
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