Crypto ETF: Grayscale drops Cardano, Hedera and Polkadot at once

Dramatic twist on the crypto ETF market! On August 7, Grayscale withdraws three ETF files in the space of 190 seconds. No official reason has been communicated by the institutional investment giant. Nonetheless, this massive drawdown is already raising questions about the future of altcoin ETFs in the United States.

A flash withdrawal that leaves the SEC speechless

The documents filed with the SEC are formal. At 4:33:37 p.m., Grayscale files an initial Form RW to withdraw the Grayscale Cardano Trust ETF. 78 seconds later, it’s the Grayscale Hedera Trust ETF’s turn. At 4:36:47 p.m., the Grayscale Polkadot Trust ETF suffered the same fate. In total: three crypto ETFs massacred in less than four minutes.

Each document also uses the same formula:

Grayscale does not intend to pursue the proposed distribution of shares.

It is thus about voluntary withdrawals under Rule 477and not a rejection of the DRY.

For now, Grayscale Investments has not provided any official explanation. That being said, different hypotheses are already being floated within the crypto community:

• The first concerns potentially weak investor demand for Single-asset spot ETF on ADA, HBAR and DOT.
• The second evokes a strategic decision to concentrate resources on priority projects, such as the Worldcoin ETF filed in July or the Hyperliquid Staking ETF already launched.
• A third, more structural hypothesis points to the current regulatory complexity in the United States.

Two days before these withdrawals, Grayscale analysts had in fact warned of the risk of a “crypto exodus” if the CLARITY Act was not adopted by the Senate.

A turnaround for Grayscale’s crypto ETFs

There recent decision by Grayscale contrasts with the momentum gained earlier this year. The company had in fact filed its crypto ETF requests for Cardano and Polkadotalongside a broader wave of filings by other asset managers.

The associated listing proposals had already been withdrawn by the stock exchanges themselves. The NYSE Arca abandoned that of Cardano last September and the Nasdaq those of Hedera and Polkadot in November.

Despite these withdrawals, Grayscale does not seem to be completely disengaging from the market Crypto ETF. The proof: it continues to push other projects, notably on Bittensor, Aave, BNB, NEAR Protocol and Zcash. Their Registration Statement is still under review.

That’s not all! Two staking products have also reached an advanced stage. We are referring to the Avalanche Staking ETF and the Hyperliquid Staking ETF, the registrations of which were declared effective in March and June 2026 respectively.

For ADA, HBAR and DOT holders, the door is also not permanently closed. The fact is that a Form RW withdrawal does not prevent Grayscale (or any other issuer) from resubmit a crypto ETF application if demand or the regulatory context evolves.

Withdrawal of crypto ETFs by Grayscale: the consequences were immediate!

On the cryptocurrency market, the news had the effect of a thunderclap in an already stormy sky.

• The price of the altcoin Cardano (ADA) fell by more than 2% in twenty-four hours.
• Hedera (HBAR) and Polkadot (DOT) followed the same trajectory.

THE Coinglass data also show mixed sentiment on derivatives. The open interest of ADA futures contracts increased by almost 1%. This means that some crypto traders are betting on a rebound. Whale activity nevertheless remains low. Decryption: without massive crypto liquidity, the rise towards $0.47 seems compromised.

In any case, this massive withdrawal by Grayscale from three major altcoin ETFs raises questions about the future of crypto ETFs in the United States. If regulations remain unclear and institutional demand uncertain, other issuers could follow the same path. The adoption of the CLARITY Act could well be the key to reassuring the market and allowing the emergence of new spot ETFs on altcoins. File to follow…