Key facts
- Grayscale Investments withdrew registration statements for proposed ETFs.
- The ETFs were tied to Cardano, Polkadot, and Hedera tokens.
- Grayscale cited Rule 477 of the Securities Act of 1933 for the withdrawals.
- The withdrawals mean Grayscale does not intend to proceed with the distribution of shares.
- The withdrawals were initiated by Grayscale, not the SEC.
- No securities were issued or sold for these proposed ETFs.
Grayscale Investments has officially withdrawn the registration statements for its proposed exchange-traded funds (ETFs) that were intended to track the performance of Cardano's ADA, Polkadot's DOT, and Hedera's HBAR tokens. The asset manager made this decision, citing Rule 477 of the Securities Act of 1933, which allows for the withdrawal of registration statements when an issuer does not intend to proceed with the proposed offering. Grayscale stated that these withdrawals were sponsor-initiated, meaning the decision came from Grayscale itself, and not from any action or rejection by the Securities and Exchange Commission (SEC). Crucially, no securities were ever issued or sold in connection with these withdrawn ETF proposals. This move indicates a shift in Grayscale's strategy regarding these specific digital assets for its ETF offerings.