2025-02-03
Asset management firm 21Shares has
officially filed for a Polkadot Exchange-Traded Fund (ETF) with the U.S.
Securities and Exchange Commission (SEC).
According to the S-1 filing on Jan 31,
2025, the company intends to list shares of the proposed 21Shares Polkadot
Trust on the Cboe BZX Exchange, mirroring its existing Polkadot Trust.
Polkadot ETF joins the expanding altcoin ETFs
The proposed ETF will track Polkadot
(DOT) prices using the CME CF Polkadot-Dollar Reference Rate and will have Coinbase
Custody as its custodian, according to the SEC filing.
The fund will follow a passive
investment strategy, steering clear of leverage, derivatives, or active
trading.
Despite the filing, Polkadot’s price
has not shown any immediate reaction to the news.
Filing of Polkadot ETF positions Polkadot
among a growing list of altcoins seeking ETF approvals, as the cryptocurrency
investment landscape continues to evolve.
Alongside the Polkadot ETF filing, 21Shares
is also awaiting approval for an XRP ETF.
Market analysts speculate that the SEC
is more likely to approve the XRP ETF first, although under Mark Uyeda’s
interim leadership, decisions on additional altcoin ETFs may face delays
because he is an interim SEC Chair.
Paul Atkins, President Trump’s nominee,
is still waiting for the congressional approval.
Meanwhile, Canary Capital's Litecoin
ETF application has also caught the SEC’s attention, suggesting that Litecoin
may be among the next altcoins to receive ETF approval.
Polkadot (DOT) currently has a market
cap of $7.8 billion. This makes Polkadot the world's 20th most
valuable crypto by market cap.
