Grayscale Pulls Plug on Cardano, Polkadot and Hedera ETFs

Grayscale Investments has stepped back from three major altcoin funds, asking the SEC to withdraw the registration statements for spot Cardano, Polkadot and Hedera exchange traded funds. The company submitted Form RW letters explaining that the sponsor does not intend to proceed with the planned distribution of the trust shares.

These proposals had stalled for months before Grayscale decided to close them. NYSE Arca previously pulled its rule change proposal for the Cardano fund, and Nasdaq withdrew the Hedera filing. Meanwhile, the Polkadot proposal saw no movement on the SEC docket for a long time. At the time of the filings, ADA sat near $0.196, DOT traded near $0.80, and HBAR hovered near $0.068.

Even with these withdrawals, Grayscale is not walking away from altcoins entirely. The firm still lists products tracking XRP, Solana, Dogecoin and Chainlink. Registrations for other assets like Aave, NEAR, Bittensor and Zcash remain active.

Traders will now watch to see if Grayscale keeps the rest of its pending applications alive or if more cuts are coming. Keep an eye on the remaining altcoin filings as the SEC continues to review crypto investment products.