Grayscale has withdrawn plans to launch exchange-traded funds tied to Cardano's ADA, Polkadot's DOT and Hedera's HBAR, highlighting how weak appetite for smaller digital assets is undermining new crypto fund launches. Bitcoin has fallen 28% this year, while an altcoin index has dropped more than 40%, and major tokens including Dogecoin, Solana and Cardano are each down about 50% from their highs. Roxanna Islam, head of research at VettaFi, said investor interest in smaller tokens must be strong enough to justify the cost of launching and maintaining an ETF, while David Tawil, co-founder of ProChain Capital, said interest in some smaller altcoins is declining. The pullback also reflects a broader shift in retail attention toward artificial intelligence-related investments, sports betting and prediction markets, with investors who do want crypto ETFs likely to favor larger, better-known asset managers.