KeyTakeaways:
- Grayscale seeks SEC approval for Polkadot ETF, tracking DOT’s spot price on Nasdaq.
- Grayscale expands crypto ETF offerings, including XRP, Solana, Dogecoin, and Cardano.
- SEC’s shift in approach raises confidence for future approval of crypto ETFs.
Grayscale Investments has filed with the U.S. Securities and Exchange Commission (SEC) to list its proposed spot Polkadot Exchange-Traded Fund (ETF) on the Nasdaq under the ticker symbol “DOT.” The fund would track the spot price of Polkadot’s native token, DOT, providing investors a regulated way to gain exposure to the cryptocurrency. This filing, submitted via Form 19b-4, is critical in obtaining SEC approval for the ETF.
This application for the Polkadot ETF is part of Grayscale’s broader to diversify its crypto ETF offerings. Alongside Polkadot, the company is seeking approval to offer ETFs tied to other digital assets, including XRP, Solana (SOL), Dogecoin (DOGE), Cardano (ADA), and Litecoin (LTC).
In addition to the Polkadot ETF, Grayscale has filed to convert its XRP Trust into an ETF and has recently applied for a spot in Cardano ETF. However, the company is positioning itself as a key player in the changing crypto investment scene, targeting assets that are becoming increasingly popular in the market.
The Role of Nasdaq’s Filing
The Form 19b-4 filing submitted to the SEC by Nasdaq plays an essential role in the approval process for new exchange-traded products. This regulatory filing is required when exchanges seek permission to list and trade securities, including cryptocurrency ETFs. Grayscale’s move to list a Polkadot ETF follows similar efforts, including 21Shares’ recent filing for a spot Polkadot ETF, which was registered in late January.
While Grayscale is pushing forward with its Polkadot ETF application, Tuttle Capital Management had initially proposed a leveraged 2x Polkadot ETF as part of a broader filing for 10 leveraged crypto ETFs. However, the firm withdrew all its 2x leveraged ETF proposals shortly after filing.
Shift in SEC’s Approach to Crypto
The increasing number of ETF filings shows a shift in the SEC’s approach toward digital assets. Under the leadership of acting SEC chair Mark Uyeda, the regulator has become more open to crypto-related investment products. Recently, the SEC dropped several investigations into major crypto entities, signaling a shift in its stance toward cryptocurrencies.
This change in regulatory tone has led to increased confidence among market participants that approval for spot crypto ETFs, including Grayscale’s Polkadot ETF, will likely be soon.
The application for Grayscale’s Polkadot ETF comes amidst growing institutional interest in cryptocurrency ETFs. More filings are expected for various altcoins, including XRP and Litecoin. As the SEC begins to acknowledge these applications, analysts closely monitor which altcoin ETFs have the highest likelihood of approval.
