Grayscale Pulls Proposed Cardano ETF Filing, Keeping ADA Pinned Below $0.20

Cardano (ADA) hovered around $0.194 after Grayscale withdrew the registration statement for a standalone Cardano exchange-traded fund, removing one possible channel for direct institutional access as the token continues to stall under the $0.20 mark. Grayscale filed a Form RW with the U.S. Securities and Exchange Commission on August 7, asking to withdraw its Cardano ETF registration statement. The firm said it no longer planned to proceed with the proposed share distribution. The registration never became effective and no securities were issued or sold. The SEC did not reject the product; Grayscale pulled the filing voluntarily and did not cite a specific business or regulatory rationale. Minutes after the Cardano withdrawal, Grayscale also pulled registration statements tied to proposed Hedera and Polkadot ETFs, pointing to a broader review of its product lineup rather than an ADA-specific reversal. In parallel, regulated CME ADA futures have now marked six months of trading. While that timeline could help satisfy certain futures-market considerations under the SEC's generic listing framework, it does not make ADA automatically eligible for a spot ETF, and participation remains thin. CME data for August 7 showed just five ADA futures contracts traded, while open interest was unchanged at 207 contracts, down from levels seen in late July. Technically, ADA last closed near $0.1936 after again failing to hold above $0.20, a level that has repeatedly capped rallies through July and August. A confirmed daily close above $0.20 remains key for extending the rebound. The Average Directional Index (ADX) stood at 24.72, suggesting a more meaningful trend may be forming. The positive directional indicator (+DI) was 27.14 versus a negative DI reading of 13.89, indicating buyers still hold the directional edge. Flow metrics are less supportive. Chaikin Money Flow (CMF) slipped to 0.06, signaling recent selling pressure has outweighed accumulation even as ADA trades near resistance. Volume Profile data shows the heaviest recent activity clustered between roughly $0.16 and $0.20. A firm daily close above $0.20 could reinforce the recovery and shift attention to $0.22. If ADA fails to break higher, it likely stays range-bound; a deeper pullback could put $0.166 back in focus, followed by about $0.152. The ETF setback does not alter Cardano's protocol roadmap. The Van Rossem hard fork went live on July 18, improving Plutus performance, cryptographic functionality, and stake pool security. The upgrade was also the network's first protocol change approved entirely through its on-chain governance system. Those fundamentals offer longer-term support, but they have not yet driven enough demand to push ADA decisively through $0.20. Bottom line: Grayscale's withdrawal was voluntary, not an SEC rejection. ADA still needs a confirmed close above $0.20 to strengthen the recovery, while softening capital flows suggest buyers have yet to secure a breakout.