Grayscale withdraws ADA, HBAR and DOT ETF filings as altcoins slide

Grayscale Investments has withdrawn registration statements for three proposed altcoin exchange-traded funds (ETFs) covering Cardano (ADA), Hedera (HBAR) and Polkadot (DOT).

The crypto asset manager filed withdrawal requests with the U.S. Securities and Exchange Commission (SEC) for the proposed Grayscale Cardano Trust ETF, Grayscale Hedera Trust ETF and Grayscale Polkadot Trust ETF.

The move came as competition in the crypto ETF market continues to increase. ADA, HBAR and DOT prices also moved lower after the filings became public, with all three tokens falling around 2% at one point.

Grayscale Withdraws Three Altcoin ETF Filings

Grayscale submitted three Form RW filings with the SEC to withdraw the registration statements for its proposed Cardano, Hedera and Polkadot ETFs.

The filings use Rule 477 under the Securities Act of 1933, which allows an issuer to withdraw a registration statement.

Grayscale used similar language in all three filings, saying that it no longer intended to proceed with the planned distribution of shares registered under the respective filings.

The company did not provide a detailed explanation for the decision.

Importantly, the SEC had not declared any of the three registration statements effective. Grayscale also stated that no securities had been issued or sold under the registrations.

The original S-1 filings were submitted in late August and early September 2025, during a period when several crypto asset managers were seeking approval for new altcoin ETFs.

The withdrawals therefore remove three proposed products from Grayscale's ETF pipeline, but they do not represent the closure of existing Cardano, Hedera or Polkadot investment products.

Why Did Grayscale Withdraw the ETF Filings?

Grayscale has not publicly given a specific reason for withdrawing the three applications.

One possible factor is the increasingly competitive crypto ETF market. Asset managers have been seeking approval for a growing number of crypto-based investment products, while some products have struggled to attract significant investor inflows.

The withdrawal also comes after other proposed crypto ETF filings were removed.

However, without a direct explanation from Grayscale, it would be premature to conclude that weak demand was the reason behind the decision.

For now, the filings only confirm that Grayscale does not plan to proceed with the three proposed ETF registrations in their current form.

ADA Price Falls After Cardano ETF Withdrawal

Cardano's ADA token came under pressure after the Grayscale filing became public.

ADA fell more than 2% over 24 hours and was trading around $0.196. The token's intraday range was approximately $0.194 to $0.199.

The derivatives market showed a mixed but relatively active response.

According to the provided CoinGlass data, ADA futures open interest increased by nearly 1% over four hours to around $477.88 million.

An increase in open interest indicates that more capital is entering the derivatives market, although it does not by itself show whether traders are bullish or bearish.

ADA's price will therefore need to regain momentum before traders can determine whether the latest decline is only a short-term reaction or the start of a deeper correction.

HBAR Drops as Grayscale Ends Hedera ETF Plans

HBAR also declined following Grayscale's withdrawal.

The token fell around 2.24% to $0.068, while its broader performance remained weak. HBAR has lost more than 30% over the past two months based on the data provided.

The withdrawal removes another potential institutional investment route for Hedera.

However, the impact of the decision on HBAR's longer-term price will depend on broader market conditions, network activity and future institutional demand rather than the ETF filing alone.

DOT Slides After Polkadot ETF Withdrawal

Polkadot's DOT token also reacted negatively to the news.

DOT fell nearly 2% to around $0.805, with the token trading between approximately $0.7976 and $0.8126 over 24 hours.

At the same time, trading volume increased by about 27%, suggesting that traders were actively responding to the price decline.

Higher volume during a sell-off can indicate stronger market participation, but it does not necessarily mean that buyers have taken control.

What the ETF Withdrawals Mean for Altcoins

Grayscale's decision removes three proposed altcoin ETFs from the SEC registration process, but it does not change the underlying fundamentals of Cardano, Hedera or Polkadot.

The immediate market reaction shows how sensitive altcoins can be to changes in institutional access.

ETF approvals can potentially create a new channel for institutional investment, while withdrawals can reduce short-term optimism around an asset.

For ADA, HBAR and DOT, traders will now likely focus on price support, derivatives activity and broader crypto market sentiment.

The decision also highlights the growing competition among crypto ETF issuers. As more products enter the market, asset managers may become more selective about which assets and structures they pursue.

For now, ADA around $0.19, HBAR near $0.068 and DOT around $0.80 remain important areas for traders to monitor as the market absorbs Grayscale's latest filings.