Breaking: Grayscale Withdraws Cardano, Hedera and Polkadot ETF Filings

Grayscale Investments has quietly withdrawn the registration statements for three proposed altcoin ETFs targeting Cardano (ADA), Hedera (HBAR), and Polkadot (DOT). The prices of ADA and other altcoins plunged by 2% after the crypto asset manager pulled the plug, providing no detailed explanation.

Grayscale Files with US SEC to Remove Cardano, Hedera, and Polkadot ETFs

Grayscale filed three Form RWs with the U.S. Securities and Exchange Commission (SEC). The crypto asset management firm requested the regulator to remove S-1 submissions for the Grayscale Cardano Trust ETF, then the Grayscale Hedera Trust ETF, and the Grayscale Polkadot Trust ETF.

It cited Rule 477 under the Securities Act of 1933 to withdraw the respective Form S-1 registration statements, amendments, and exhibits. The S-1s were initially filed in late August and early September last year amid a massive push for crypto ETFs.

Grayscale provided the same grounds for removing Cardano, Hedera, and Polkadot ETFs, but didn’t give the exact reasons behind the move. “The Sponsor does not intend to proceed with the planned distribution of the Trust’s shares registered by the Registration Statement,” the filings read.

Grayscale also confirmed that none of the registration statements were declared effective. “No securities have been or will be issued or sold pursuant to the Registration Statement or the prospectus contained therein and no preliminary prospectus contained in the Registration Statement has been distributed,” it added.

As CoinGape reported earlier, Bitwise also withdrew its S-1 registration statement for a proposed Bitcoin & Ethereum ETF. Notably, the SEC filings to withdraw crypto ETFs have increased recently amid rising competition and low inflows.

ADA, HBAR and DOT Prices Slump

ADA price fell more than 2% in the past 24 hours as Grayscale filed to withdraw Cardano ETF. The price is currently trading at $0.196, with 24-hour lows and highs of $0.194 and $0.199, respectively. However, analysts expect ADA price could climb toward $0.47 after its breakout, but limited whale activity may restrict momentum.

The derivatives market showed mixed sentiment and buying in the last few hours, as per Coinglass data. ADA futures open interest climbed nearly 1% over the last 4 hours to $477.88 million, with buying seen across derivatives crypto exchanges.

Meanwhile, HBAR price has dropped 2.24% to $0.068 amid the removal of the Grayscale Hedera Trust ETF. Notably, HBAR has dropped more than 30% in the last two months.

Also, Grayscale Polkadot Trust ETF’s withdrawal led to DOT falling nearly 2%, with the price currently trading at $0.805. The 24-hour low and high were $0.7976 and $0.8126, respectively. However, a 27% increase in trading volume indicated interest among traders in buying the dip.