Grayscale withdraws ETF applications for Cardano, Hedera, and Polkadot: what does this mean for the market
A major step from Grayscale: the asset management firm has officially withdrawn registration statements for exchange-traded funds based on Cardano (ADA), Hedera (HBAR), and Polkadot (DOT). This decision, recorded in documents filed with the U.S. Securities and Exchange Commission (SEC), signals a reassessment of priorities in the issuer's product lineup.
Details of the withdrawal: a formality or a strategic move?
In documents filed under Form RW, Grayscale clearly states that it "does not intend to proceed with the proposed offering of shares" for all three trusts — Grayscale Cardano Trust ETF, Grayscale Hedera Trust ETF, and Grayscale Polkadot Trust ETF. It is important to emphasize: this is not a rejection by the regulator, but a voluntary decision by the company itself. The S-1 registration statements never took effect, and no securities were issued or sold.
Notably, the withdrawal occurred against the backdrop of already inactive exchange listings. For example, NYSE Arca withdrew its proposal for Cardano back on September 29, 2025, and Nasdaq did the same for Polkadot and Hedera on November 3, 2025. This indicates that Grayscale likely assessed the low chances of approval in advance or decided to focus on more promising assets.
Focus on new horizons
Despite winding down these three applications, Grayscale continues to actively promote other ETF products. In particular, the company expects full approval for exchange-traded funds 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, demonstrating the issuer's readiness to bet on staking and new niches.
This move also aligns with a recent analytical report from Grayscale, where the AAVE token was called "undervalued" with a base target of $179 for the coming year. It is evident that the company is betting on assets with high yield potential and institutional interest.
My expert view: The withdrawal of applications for ADA, HBAR, and DOT is a pragmatic decision reflecting the current market environment. Amid tightening regulation and high competition among ETF issuers, Grayscale is choosing only those products that have real chances of approval and liquidity. For investors, this is a signal: do not expect ETFs on these altcoins to appear soon, but there is no need to panic either — the company is reallocating resources to more promising directions, which in the long term could strengthen its market position.