Institutional demand for altcoin ETFs below the top tier is insufficient to justify the operational and regulatory costs of launching standalone products.
Too little corroboration in the last 3 days to call a trend (2 articles). Watching for it to gain traction.
"The most likely explanation for Grayscale's withdrawal is the simplest one: the numbers did not work. Launching an ETF is not free. Legal fees, compliance infrastructure, market-making arrangements, custodial agreements, marketing, and ongoing regulatory reporting all carry costs. For a Bitcoin or Ethereum product with billions of dollars in potential demand, those costs are trivial relative to the revenue from management fees. For an altcoin ETF tracking a $6.55 billion asset with tepid institutional interest, the calculus is different."
"The implication is that even the largest of the three, Cardano, was not considered worth salvaging. Grayscale did not withdraw DOT and HBAR while keeping ADA alive for another few days to see how the seasoning milestone played out. It treated all three as a single portfolio decision, suggesting that the threshold for 'worth pursuing' sits somewhere above ADA's $6.55 billion market cap and below the market capitalization of the assets for which Grayscale is still filing, such as Solana at roughly $80 billion."