Grayscale withdraws ETF applications for Cardano, Hedera, and Polkadot: what this means for the market
Asset management firm Grayscale has decided to withdraw registration statements for launching exchange-traded funds (ETFs) for Cardano (ADA), Hedera (HBAR), and Polkadot (DOT). This is a step that I view as a strategic adjustment, rather than a signal of failure for these assets.
Details of the Withdrawal
According to official documents filed with the U.S. Securities and Exchange Commission (SEC), this concerns the Grayscale Cardano Trust ETF, Grayscale Hedera Trust ETF, and Grayscale Polkadot Trust ETF. All three forms contain 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 rejection by the regulator, but a voluntary withdrawal of applications via Form RW.
The key point here is the status of these products. The filings note that the registration forms did not take effect, no securities were issued or sold, and no preliminary prospectus was distributed. In effect, this was a "paper" initiative that never reached the stage of active promotion.
Context and Market Dynamics
Notably, exchange proposals related to these products were already inactive before the withdrawal. For example, NYSE Arca removed its listing application for Cardano as early as September 29, 2025, and Nasdaq withdrew proposals for Polkadot and Hedera on November 3, 2025. This indicates that interest in these instruments had faded at the infrastructure level, and Grayscale merely formalized an already established situation.
At the same time, the company continues to seek approval for other products. In particular, applications for ETFs based on Bittensor, Aave, BNB, NEAR, and Zcash are pending. Moreover, this year the SEC has already approved registration forms for the Grayscale Avalanche Staking ETF and Grayscale Hyperliquid Staking ETF, demonstrating the regulator's readiness for targeted decisions.
My View on the Situation
The withdrawal of applications for ADA, HBAR, and DOT is not a verdict for these ecosystems, but rather a reallocation of resources. Grayscale, as an experienced player, is clearly focusing on assets with higher institutional demand and liquidity. For investors, this is a signal that in the near term, one should expect the launch of ETFs for Aave or NEAR, rather than for altcoins with less pronounced market support. However, this does not rule out a return to these applications later if the market conditions change.