Grayscale Scraps Cardano, Polkadot and Hedera ETF Plans as Altcoins Struggle

Grayscale Investments has quietly abandoned plans to launch three cryptocy exchange-traded funds tied to Cardano (ADA), Polkadot (DOT), and Hedera (HBAR), withdrawing the proposed products from the U.S. Securities and Exchange Commission. The asset manager submitted three separate withdrawal requests within minutes of each other late on August 7, telling regulators that it no longer intends to move forward with distributing shares of the proposed trusts. Importantly, the withdrawals were initiated voluntarily by Grayscale and were not SEC rejections, leaving the company free to potentially revisit the products in the future. 

The decision comes after a difficult stretch for all three cryptocurrencies. ADA, DOT and HBAR have experienced substantial declines throughout 2026, potentially making dedicated investment products less attractive as Grayscale evaluates which cryptocurrencies have enough institutional and retail demand to support standalone ETFs. Grayscale did not provide an official reason for withdrawing the registrations. 

Three Altcoin ETFs Withdrawn at Once

Grayscale withdrew registration statements for its proposed Cardano Trust ETF, Polkadot Trust ETF, and Hedera Trust ETF.

The three withdrawal requests were submitted to the SEC within approximately four minutes of each other.

Grayscale told regulators that it no longer intended to proceed with the planned distribution of shares associated with each trust. None of the registrations had become effective, and no securities had been issued or sold under the proposed offerings. 

SEC Did Not Reject the ETFs

One of the most important distinctions is that regulators did not deny the applications.

Grayscale itself withdrew them.

That means the decision should not necessarily be interpreted as the SEC taking a harder position against ETFs involving ADA, DOT or HBAR. Grayscale could potentially submit new registration statements for the cryptocurrencies at another time if market conditions or its product strategy changes. 

The company did not immediately provide CoinDesk with additional comments explaining its decision.

Plans Had Been Developing Since 2025

Grayscale’s effort to bring the three altcoins into the ETF market stretched back to early 2025.

The company’s initial Cardano ETF proposal arrived in February 2025, followed by its Polkadot proposal later that month.

Grayscale subsequently filed registration statements for the ADA and DOT products on August 29, 2025, followed by its Hedera registration on September 9. 

The proposed ETFs were designed as passive investment products tracking the value of their respective cryptocurrencies after fees and expenses.

ADA, DOT and HBAR Have Suffered Major Losses

The withdrawals come as all three cryptocurrencies struggle with significant price declines.

According to data cited by CoinDesk, during 2026:

• Cardano (ADA) has fallen more than 41%.
• Polkadot (DOT) has lost approximately 54%.
• Hedera (HBAR) has declined around 35%.

The declines become even more dramatic when measured from around the time Grayscale initially pursued the ETF products in February 2025.

Since then, ADA has experienced approximately a 70% drawdown, DOT has fallen around 80%, and HBAR has declined more than 70%. 

Grayscale did not directly attribute the withdrawals to those price declines, however, so any connection between token performance and its decision remains speculative.

Grayscale Still Has a Large Crypto ETF Lineup

Dropping the three products does not mean Grayscale is retreating from cryptocy ETFs altogether.

The withdrawals instead reduce the company’s pipeline of proposed single-token investment products.

Grayscale currently has 17 ETF products listed on its website, including products such as its Bitcoin Mini Trust ETF, Ethereum Staking Mini ETF, and Hyperliquid Staking ETF. 

The company therefore appears to be refining its expanding ETF lineup rather than abandoning its broader strategy of bringing cryptocurrencies into traditional investment vehicles.