Key facts
- Grayscale Investments has withdrawn registration statements for proposed ETFs for Cardano, Hedera, and Polkadot.
- The withdrawals were filed with the U.S. Securities and Exchange Commission (SEC) using Form RW.
- Grayscale cited Rule 477 of the Securities Act of 1933 as the basis for the withdrawals.
- The company stated it does not intend to proceed with the planned distribution of shares for these trusts.
- The prices of Cardano (ADA), Hedera (HBAR), and Polkadot (DOT) saw declines of around 2% after the news.
Grayscale Investments has withdrawn the registration statements for three proposed exchange-traded funds (ETFs) focused on Cardano (ADA), Hedera (HBAR), and Polkadot (DOT). The firm filed three Form RWs with the U.S. Securities and Exchange Commission (SEC), requesting the removal of the S-1 submissions for the Grayscale Cardano Trust ETF, Grayscale Hedera Trust ETF, and Grayscale Polkadot Trust ETF.
Grayscale cited Rule 477 under the Securities Act of 1933 for the withdrawals, stating that the sponsor does not intend to proceed with the planned distribution of the trusts' shares. The company confirmed that none of the registration statements were declared effective and no securities were issued or sold. The S-1 filings for these ETFs were initially submitted in late August and early September of the previous year.
Following the news, the prices of ADA, HBAR, and DOT experienced declines of approximately 2%. ADA was trading at $0.196, HBAR at $0.068, and DOT at $0.805. Analysts have noted mixed sentiment in the derivatives market for ADA, with futures open interest climbing. HBAR has seen a more significant drop of over 30% in the last two months. Despite the price dip, DOT saw a 27% increase in trading volume, indicating potential trader interest.