Grayscale Withdraws ADA, HBAR, and DOT ETF Filings: Strategic Retreat or Temporary Pause?
Grayscale Investments, the digital asset manager with roughly $45 billion in assets under management, withdrew its SEC registration filings for proposed Cardano (ADA), Hedera (HBAR), and Polkadot (DOT) exchange-traded funds on August 7, 2026. The company submitted three separate Form RW requests to the Securities and Exchange Commission, formally pulling the S-1 registration statements for its Cardano Trust ETF, Hedera Trust ETF, and Polkadot Trust ETF.
The withdrawals come just two days before CME Group’s regulated ADA futures contracts were set to complete six months of trading on August 9, a milestone that had been seen as a potential catalyst for ETF approval.
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What Led to the Withdrawal?
The three ETF proposals had been in various stages of the approval process since late 2025. Grayscale first submitted the S-1 registrations for the Cardano and Polkadot funds on August 29, 2025, with the Hedera filing following on September 9, 2025. However, the critical exchange listing proposals, known as 19b-4 filings, had already been withdrawn months earlier.
NYSE Arca withdrew its listing proposal for the Cardano ETF on September 29, 2025, while Nasdaq pulled its proposals for the Polkadot and Hedera funds on November 3, 2025. Without an active exchange listing process, the S-1 registrations could not move forward, leaving Grayscale with little reason to keep them active.
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According to the Form RW filings, Grayscale stated that it did not intend to continue with the planned distribution of shares. The filings also confirmed that the registrations had not become effective and that no shares had been issued or sold.
Strategic Move, Not a Regulatory Setback
The decision appears to be a calculated strategic withdrawal rather than a rejection by the SEC. A crypto ETF typically requires two key filings: the S-1, which details the fund’s structure, and the 19b-4, which seeks exchange approval to list the product. With the 19b-4 filings already withdrawn, maintaining the S-1 registrations offered no tangible benefit.
By voluntarily withdrawing the applications, Grayscale avoided a formal SEC decision, which could have set a negative precedent for future filings. The company retains the option to resubmit applications if market conditions or the regulatory environment in the U.S. become more favorable.
This selective approach is notable. While Grayscale pulled the ADA, HBAR, and DOT filings, other early-stage applications for Bittensor (TAO), Aave (AAVE), BNB, Near Protocol (NEAR), and Zcash (ZEC) remain in place. This suggests the withdrawals were targeted, possibly reflecting differing assessments of each asset’s regulatory outlook or market readiness.
What This Means for the Altcoin ETF Sector
The withdrawal is a setback for the broader altcoin ETF movement, which had gained momentum following the approval of spot Bitcoin and Ethereum ETFs in 2024. However, it does not signal an end to the push for diversified crypto ETFs.
Grayscale’s decision to preserve the option to refile, combined with the ongoing filings for other altcoins, indicates that the asset manager remains committed to expanding its ETF lineup. The timing of the withdrawal, just before the CME ADA futures milestone, may also reflect a desire to avoid an unfavorable SEC ruling during a period of regulatory uncertainty.
For investors, the key takeaway is that the withdrawals are procedural, not a judgment on the underlying assets. The SEC has not issued a formal rejection, and the path to approval remains open, albeit uncertain.
As the regulatory market evolves, particularly with the ongoing debate over the CLARITY Act in Congress, Grayscale and other issuers are likely to revisit these filings. For now, the altcoin ETF pipeline has narrowed, but it has not closed.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency markets are volatile and uncertain. Always conduct your own research before making investment decisions.
