Grayscale Investments has withdrawn the registration statements for its proposed Cardano, Hedera, and Polkadot exchange-traded funds, formally ending its push to bring the three altcoin products to U.S. markets. The decision narrows the firm's current altcoin ETF pipeline even as competitors continue pursuing similar products for other tokens.

The asset manager submitted Form RW requests to the U.S. Securities and Exchange Commission covering the Grayscale Cardano Trust ETF, Grayscale Hedera Trust ETF, and Grayscale Polkadot Trust ETF. Grayscale invoked Rule 477 under the Securities Act of 1933 to request the withdrawals.

Original Filings and Timeline

Grayscale originally filed the S-1 registration statements for the Cardano and Polkadot trusts on August 29, 2025. The Hedera S-1 followed on September 9, 2025. Each proposed trust was designed to provide investors with regulated market exposure to its underlying token through exchange-listed shares, holding ADA, HBAR, and DOT respectively while tracking each token's value net of fees and expenses.

The withdrawals mark a retreat from three of the altcoin trusts Grayscale had queued behind its more advanced crypto ETF efforts. The firm's spot Bitcoin and Ethereum ETFs received regulatory approval in 2024, establishing a pathway that altcoin issuers have sought to replicate.

Stated Reasons for Withdrawal

The withdrawal documents cite a single reason: Grayscale's sponsor does not intend to proceed with the planned distribution of each trust's shares. The company did not identify market demand, regulatory concerns, costs, or market conditions as factors in the decision.

The SEC never declared any of the three registration statements effective, and Grayscale stated that it never issued or sold securities under the filings. Accordingly, the company requested that the regulator withdraw the S-1 statements, amendments, and related exhibits before any public distribution occurred.

The withdrawals come amid a broader pattern of issuers reassessing pending crypto products. In June, Bitwise separately withdrew a proposed Bitcoin and Ethereum ETF registration. Multiple asset managers continue to maintain filings for other altcoin products, including Solana and XRP-linked ETFs, leaving the competitive landscape for altcoin ETFs still active despite Grayscale's pullback.

Market Reaction: ADA, HBAR, and DOT Decline

Cardano (ADA) fell more than 2% following the ETF withdrawal news, trading near $0.196. Futures open interest rose slightly over a four-hour window, indicating that traders maintained positions during the decline.

ADA has rebounded more than 40% from its late-June low near $0.139 but now faces technical resistance around $0.196, where a Fibonacci level and the 100-day exponential moving average converge. A rejection from that zone could push ADA toward support near $0.174, with a further break potentially exposing the June low near $0.139. A wider bear-flag pattern places a lower technical target near $0.098 if sellers break the rising support structure.

Hedera (HBAR) dropped approximately 2.24% to $0.068 after the withdrawal. The token had already declined more than 30% over the previous two months, leaving it under sustained price pressure.

Polkadot (DOT) fell close to 2%, trading near $0.805 with a reported daily range between $0.7976 and $0.8126. Trading volume increased roughly 27% during the period, reflecting heightened market activity as the price moved lower.

The three withdrawals close Grayscale's current registration process for these proposed altcoin investment products, and whether the firm refiles for these tokens or redirects resources toward other crypto ETF applications remains to be seen.