Grayscale has withdrawn ETF applications for Cardano, Hedera, and Polkadot — what lies behind the decision
Grayscale Investments' activity around altcoin ETFs has slowed down. The asset management firm has officially withdrawn registration statements for exchange-traded products based on Cardano, Hedera, and Polkadot. This decision is documented in filings submitted to the U.S. Securities and Exchange Commission (SEC) and concerns three trusts: Grayscale Cardano Trust ETF, Grayscale Hedera Trust ETF, and Grayscale Polkadot Trust ETF.
All three forms use identical wording: the firm "does not intend to proceed with the proposed offering of shares." It is important to emphasize that this is not a regulatory rejection, but a voluntary step by the company itself. The S-1 filings never became effective, no securities were issued, and preliminary prospectuses were not distributed — meaning the process was halted at an early stage.
Notably, by the time of the withdrawal, the corresponding exchange listings had already lost relevance. According to SEC data, NYSE Arca withdrew the Cardano application on September 29, 2025, and Nasdaq withdrew the Polkadot and Hedera proposals on November 3, 2025. These refer to listing applications, whereas Grayscale withdrew the registration documents for the public offering of shares.
Nevertheless, the company is not abandoning plans to expand its crypto-ETF lineup. Grayscale continues to seek full approval for products based on Bittensor, Aave, BNB, NEAR, and Zcash. Moreover, this year the SEC has already approved registration statements for Grayscale Avalanche Staking ETF and Grayscale Hyperliquid Staking ETF, indicating sustained interest in staking products.
Recall that in June, Grayscale analysts called the AAVE token "undervalued," setting a base price target of $179 for the coming year.
My take on the situation
The withdrawal of applications for Cardano, Hedera, and Polkadot is not a signal of market weakness, but rather a pragmatic move. Grayscale is clearly reallocating resources toward products with higher demand and regulatory clarity. Given that the SEC has already approved staking ETFs from Grayscale, the company's priority is shifting toward assets with real institutional interest. For ADA, HBAR, and DOT holders, this is a temporary pause, not a verdict — the situation could change if the regulatory climate shifts.