Grayscale Investments has withdrawn its registration statements for exchange-traded funds tied to Cardano's ADA, Polkadot's DOT, and Hedera's HBAR, effectively abandoning plans for three single-token crypto investment products.
The asset manager submitted three withdrawal requests to the U.S. Securities and Exchange Commission within four minutes of each other late Friday, stating in each filing that it "does not intend to proceed with the planned distribution" of the shares.
Sponsor-Initiated Withdrawals
The withdrawals were initiated by Grayscale, not imposed by the SEC. None of the proposed funds had become effective, and no securities were issued or sold under the registrations.
Grayscale filed its initial Cardano ETF proposal in February 2025, followed by Polkadot later that month and Hedera in September. Registration statements for ADA and DOT were submitted on August 29, with HBAR following on September 9.
The proposed funds were designed as passive investment vehicles tracking the value of their respective tokens net of fees and expenses. Grayscale gave no reason for the withdrawals and could submit new registrations in the future.
Token Performance
All three tokens have experienced significant declines. Year-to-date, ADA is down more than 41%, DOT has lost 54%, and HBAR has fallen 35%. Performance since the initial filings in early 2025 is worse: ADA endured a 70% drawdown, DOT saw an 80% decline, and HBAR dropped more than 70%.
The withdrawals narrow Grayscale's pipeline of proposed single-token products. The firm currently lists 17 ETF products on its website, including the Bitcoin Mini Trust ETF, Ethereum Staking Mini ETF, and Hyperliquid Staking ETF.
Grayscale has not responded to requests for comment.