Grayscale Targets Polkadot ETF on Nasdaq as Altcoin ETF Competition Continues
Key Takeaways:
- Nasdaq has applied to list Grayscale’s Polkadot ETF, highlighting the increasing demand for altcoin investment vehicles.
- The SEC’s evolving stance on crypto, potentially influenced by the new administration, is increasing the likelihood of altcoin ETF approvals.
- If approved, analysts suggest that DOT could see a substantial price surge.
Nasdaq Filing to List Grayscale Polkadot ETF in an Altcoin ETF Frenzy
Nasdaq, a prominent US securities exchange, has in fact submitted a request to the Securities and Exchange Commission (SEC) to list and trade shares of the Grayscale Polkadot Trust (DOT). The move adds to the increasingly crowded list of proposed altcoin ETFs seeking regulatory approval and further illustrates the institutional appetite for cryptocurrencies beyond Bitcoin and Ethereum. If approved, this would give investors exposure to a regulated, exchange-traded fund of the native DOT token for the Polkadot network.
Nasdaq’s proposal
Grayscale — ETF ambitions, expansiveness
Grayscale Investments has been around the block when it comes to ETFs. They already oversee spot Bitcoin ETFs, a spot Ether ETF and have signaled a desire to launch similar offerings based on other digital assets. Proposing a Polkadot ETF falls in line with their overall strategy to enhance their lineup of publicly traded crypto funds.
After Bitcoin and Ether: Broadening the Bet on Crypto
Grayscale is not limiting its focus to Polkadot. They have expressed interest in listing altcoin ETFs, with holdings across a wide variety of cryptocurrencies such as Solana (SOL), Litecoin (LTC), XRP, Dogecoin (DOGE) and Cardano (ADA). They are also looking to list an ETF that would hold a diverse array of cryptocurrencies, which would align with what they envisage as a complete investment ecosystem for all things crypto.
Grayscale’s Current Crypto Product Range
Grayscale also runs dozens of single-asset crypto funds, though these are not traded on public exchanges. On February 15, 2025, they further demonstrated their commitment to emerging crypto assets by launching an investment fund for the Pyth Network’s native token. They also launched a non-listed investment fund for Dogecoin back in January, capitalizing on the rise of this meme-inspired cryptocurrency. In December last year, Grayscale announced the launch of two new products tied to investment funds with Lido and Optimism’s governance tokens, namely LDO and OP.
The Altcoin ETF Gold Rush
Grayscale has company in this mission. There are currently half a dozen asset managers that have applied to the SEC to launch altcoin ETFs. Illustrating the growing confidence in these investment vehicles, companies like 21Shares introduced a Polkadot ETF. Others include Hedera (HBAR) and even “Official Trump (TRUMP)” token.
More News: Nasdaq-Listed HBAR ETF Filing Offers A New Injection Of Life For Altcoin Investors
The Evolving Landscape of SEC Regulation
This provides an updated perspective on the evolving state of cryptocurrency regulation in the US during a pivotal period. SEC under former president Joe Biden, was involved in a barrage of lawsuits, accusing a number of crypto firms of violating securities laws. But since the recent administration change, there has been a marked regulatory tone shift.
The SEC under the current administration seems to be adopting a more crypto-friendly stance. Some of these investigations have already been dropped, such as those against Robinhood and the NFT marketplace OpenSea. The shift in position is driving hope that the SEC could be more open to approving altcoin ETFs.
Expert Assessment of the Odds of Approval
But what about altcoin ETFs? Bloomberg Intelligence has assessed their chances of approval. The approval probability for an XRP ETF is estimated at 65%, while Litecoin and Solana ETFs have even higher odds of getting approved at 90% and 70%, respectively.
Can Polkadot (DOT) Price Rise to $34?
The potential approval of a Polkadot ETF has sparked intense debate about its impact on DOT’s price. If the ETF is approved and key resistance levels are broken, some analysts anticipate a significant rally, potentially pushing DOT’s price up to $34.
Important Resistance Areas to Monitor
The first significant resistance level to focus on, according to Polkadot price prediction, is $6. A conclusive move above this level has the potential to indicate strong bullish momentum. And the next major resistance is at $11, which has already been tested twice and rejected. Breaking this barrier could signal a strong bullish trend, potentially paving the way for DOT to reach $34 with minimal resistance.
What If Polkadot Faces a Prolonged Downtrend?
The gradual decline of DOT means it must find a solid bottom in order to recover. On the other hand if there is a steep and fast fall then it could bring about a V shaped recovery as DOT could give back an equally strong bounce.
The SEC’s Review Process: A 45-Day Countdown
The SEC now has 45 days to review and respond to Nasdaq’s application for listing the Grayscale Polkadot Trust. Within this window, the regulator may approve the application, disapprove it, or extend the review period for additional assessment. The result of this review will be a key factor in the fate of the ETF.
Trading of commodity-based trust shares on Nasdaq
The Grayscale Polkadot Trust was filed pursuant to Nasdaq Rule 5711(d), which governs the listing and trading of “Commodity-Based Trust Shares.” This rule provides the criteria the ETF must satisfy in order to be listed on the exchange.
Grayscale’s Major Players and Collaborators
Key Players and Partners in Grayscale’s Polkadot Trust The ETF is sponsored by Grayscale Operating LLC and Grayscale Investments Sponsors LLC, both subsidiaries of Digital Currency Group, Inc. The trustee is CSC Delaware Trust Company, and the custodian is Coinbase Custody Trust Company, LLC. BNY Mellon Asset Servicing will be responsible for administration and transfer duties and Foreside Fund Services, LLC, will handle distribution and marketing. CoinDesk Indices, Inc., will be the index provider for the trust.
Mixed Reactions in the Crypto Community
Within the crypto community, reactions to the possibility of a Polkadot ETF have been mixed. Analysts such as Bloomberg Intelligence’s James Seyffart, have raised doubts that the fund would find success. They argue that the market will ultimately set the value of these products. One possibility is that the Polkadot ETF could be discontinued if it fails to attract sufficient investor interest.
Impacts on wider crypto adoption
This potential approval of a Polkadot ETF is a major milestone on the road to the mass adoption of cryptocurrencies. With these ETFs providing a regulated and easy-to-access investment vehicle, they can appeal to a wider array of investors other than those of retail, like institutional players who were hesitant to venture into the crypto market before. The future of these ETFs will likely open the door to new developments and expansion in the crypto world.
The Future of Altcoin ETFs
With the SEC set to crack the door open to altcoin ETFs, the race is now on, and the decisions made over the months to come will shape crypto investment opportunities for the future. With an increasing number of asset managers looking to provide these products, investors will likely have more means to get exposure to the rich and rapidly evolving world of cryptocurrencies.
The approval of Bitcoin and Ethereum ETFs by the SEC was a major milestone, but the potential approval of altcoin ETFs could be even more significant. Such a move would legitimize cryptocurrencies as an asset class and open up new opportunities in this rapidly growing sector.
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