21Shares Polkadot ETF: Nasdaq Officially Files with SEC
Key Takeaways:
- Nasdaq has a pending application for a Polkadot ETF from 21Shares, contingent on SEC approval.
- The ETF would provide investors exposure to DOT — Polkadot’s native token — without the need for direct ownership.
- This move signals growing institutional interest in Polkadot as well as in the wider digital asset investment vehicles.
Nasdaq has officially filed Form 19b-4 with the SEC, seeking approval to list and trade shares of the 21Shares Polkadot Trust, a spot Polkadot ETF. The application marks a significant step toward providing investors with a regulated and accessible way to invest in Polkadot’s native token, DOT.
The ETF Landscape Evolves
This ETF, if approved, would track the spot price of DOT. DOT currently has a market capitalization of approximately $6.4 billion — making it the 27th largest cryptocurrency, according to data from CoinGecko. The fund will be managed by 21Shares US LLC, while Coinbase Custody will secure the underlying DOT tokens. Similar to the 21Shares Bitcoin and Ethereum ETFs, this fund will use the CME CF Polkadot Index as its benchmark.
Grayscale Investments is also eyeing the launch of a spot Polkadot ETF, demonstrating strong institutional interest in this asset class. The SEC’s decision on these proposals will certainly be scrutinized.
Aside from that, 21Shares is also looking into expanding its ETF offerings. The Firm is already seeking regulatory approval for similar ETFs based on XRP and Solana (SOL). This strategic expansion highlights 21Shares’ ambition to become a leading provider of diverse digital asset investment products.
The firm has also proposed enabling staking, a process that allows participants to earn rewards by helping to secure the Ethereum network, in its 21Shares Core Ethereum ETF. The proposal would increase returns for investors, though only Trust-held Ethereum would be staked. Hashdex is also pursuing staking in its Ethereum ETF filing, updating it on the same day to reflect this change.
The Implications for Polkadot Are Threefold
The potential listing of a Polkadot ETF could be a turning point for the blockchain project. Polkadot is a distinct blockchain that connects “parachains” to enable interoperability with different blockchains. For example, Rob Habermeier, the founder of Polkadot, believes that its focus is on interoperability and security.
- Greater Access: An ETF would make DOT more accessible to a wider range of investors, including those wary of direct purchase and custody of cryptocurrencies.
- Price Discovery: The additional trading activity would increase overall price discovery and could, in theory, decrease volatility as well as create a more stable market for DOT.
The SEC has repeatedly postponed or denied a number of cryptocurrency-related ETF proposals, often citing concerns about market manipulation and the protection of investors. The agency’s approach on these matters will play a key role in shaping the future of both 21Shares’ Polkadot ETF application and the digital asset investment space in general.
More News: Grayscale’s Dogecoin Trust & 21Shares Polkadot ETF Signal New Era for Altcoins
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