Grayscale has withdrawn its ETF applications for ADA, HBAR, and DOT: what lies behind the decision
Asset management firm Grayscale has officially withdrawn registration statements for launching exchange-traded funds (ETFs) for Cardano (ADA), Hedera (HBAR), and Polkadot (DOT). This move signals a reassessment of priorities amid intensifying competition in the crypto-ETF market.
According to documents filed with the U.S. Securities and Exchange Commission (SEC), the matter concerns three Form S-1 filings: Grayscale Cardano Trust ETF, Grayscale Hedera Trust ETF, and Grayscale Polkadot Trust ETF. In all three cases, the wording is identical: the company "does not intend to proceed with the proposed offering of shares." This means the securities were not issued, not sold, and preliminary prospectuses were not distributed.
Technical nuance: withdrawal, not rejection
It is important to emphasize that the withdrawal was executed via Form RW — a voluntary removal of applications by the company itself, not a ban imposed by the regulator. The SEC did not issue a negative verdict on the merits of the products. However, by the time of the withdrawal, the listing applications on exchanges were already inactive: NYSE Arca removed the proposal for Cardano back on September 29, 2025, and Nasdaq withdrew applications for Polkadot and Hedera on November 3, 2025.
Clear logic can be traced here: Grayscale has effectively deactivated the entire pipeline for these assets — both exchange listings and public offering registration. This indicates that the company does not see a near-term window for approval of these products or is deliberately reallocating resources.
Focus on promising niches
Notably, Grayscale continues to await full approval for ETFs based on Bittensor, Aave, BNB, NEAR, and Zcash. Moreover, this year the SEC has already approved registration statements for the Grayscale Avalanche Staking ETF and Grayscale Hyperliquid Staking ETF. This points to a strategic shift toward assets with higher institutional demand and clear staking mechanics that add yield.
Recall that in June, Grayscale analysts called AAVE an "undervalued" asset, setting a base target for the year ahead at around $179. This confirms that the company is betting on fundamentally strong projects with real utility, rather than speculative altcoins.
My take: The withdrawal of applications for ADA, HBAR, and DOT is a pragmatic step. In an environment where the SEC approves products selectively and liquidity is unevenly distributed, Grayscale is optimizing its application portfolio. For the market, this is a signal: not every altcoin will become an ETF in the near term, and investors should focus on asset quality rather than the number of filed applications. That said, if the regulatory environment softens, these three products could return to the agenda — just later.