- Grayscale has withdrawn its proposed Cardano, Hedera and Polkadot ETF filings with the SEC without giving a specific reason.
- ADA, HBAR and DOT prices fell around 2% following the withdrawals.
Grayscale Investments has withdrawn its proposed ETFs for Cardano, Hedera and Polkadot. The investment firm filed withdrawal requests with the SEC for the three products.
Grayscale had initially filed registration statements for the Cardano (ADA), Hedera (HBAR) and Polkadot (DOT) ETFs last year. The withdrawals have since pressured the three altcoins, with ADA, HBAR and DOT prices falling around 2%.
Grayscale Pulls Three Altcoin ETF Filings
Grayscale submitted three Form RW filings with the SEC to withdraw the registration statements for its proposed ETFs.
The filings covered the Grayscale Cardano Trust ETF, Grayscale Hedera Trust ETF and Grayscale Polkadot Trust ETF. Grayscale cited Rule 477 under the Securities Act of 1933 as the basis for withdrawing the filings.
The original S-1 registration statements were submitted in late August and early September last year. They came during a period of growing interest in cryptocurrency ETFs.
Grayscale did not provide a specific reason for abandoning the three products. Instead, the filings stated that the sponsor does not intend to proceed with the planned distribution of the trust shares.
The asset manager also confirmed that the registration statements had not become effective. No securities had been issued or sold under the filings.
The withdrawals come as competition increases across the crypto ETF market. Other proposed products have also faced changes or withdrawals as asset managers reassess demand and market conditions.
ADA, HBAR and DOT Prices Fall
The news put additional pressure on the three altcoins. Cardano price fell more than 2% over 24 hours, trading around $0.196. ADA recorded a low of $0.194 and a high of $0.199 during the period.
Despite the decline, activity in the ADA derivatives market remained mixed. Futures open interest rose nearly 1% over four hours to about $477.88 million.
HBAR also declined following the withdrawal of the proposed Grayscale Hedera ETF. Hedera price fell about 2.24% to $0.068. HBAR has also lost more than 30% over the past two months.
Polkadot price dropped nearly 2% after Grayscale withdrew its ETF filing. DOT traded around $0.805, with a 24-hour low of $0.7976.
However, DOT trading volume increased by about 27%. The rise suggests that some traders were looking to buy after the price decline.
Grayscale’s decision removes three proposed altcoin ETFs from the regulatory pipeline. For ADA, HBAR and DOT, the withdrawals could weigh on sentiment as traders assess the impact on future institutional demand.
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Disclaimer:
This article is for informational purposes only and should not be considered financial or investment advice. Cryptocurrency investments carry risk, and readers should conduct their own research before making any investment decisions.