Nasdaq Seeks SEC Approval for 21Shares Polkadot ETF With New Filing

4 mins mins

Key Points:

– Nasdaq has filed a request with the SEC to list 21Shares Polkadot ETF, which would allow investors to gain exposure to DOT without direct ownership.
– 21Shares is expanding its crypto ETF offerings, including applications for XRP and SOL ETFs, and proposing staking for its Ethereum ETF.

Nasdaq Seeks SEC Approval for 21Shares Polkadot ETF With New Filing

Nasdaq has officially submitted Form 19b-4 to the U.S. Securities and Exchange Commission (SEC) to list 21Shares Polkadot ETF.

If approved, the exchange-traded fund would allow investors to gain exposure to Polkadot’s native cryptocurrency, DOT, without directly holding the asset.

Nasdaq Pushes for SEC Approval of 21Shares Polkadot ETF

The 21Shares Polkadot ETF is designed to track the spot price of Polkadot’s DOT token, currently the 21st largest cryptocurrency by market capitalization. DOT is currently trading open at $4.3 at the time of writing.

DOT price on CoinMarketCap — DOT price. *Source: CoinMarketCap*

The filing follows an earlier S-1 amendment submission by 21Shares outlining its strategy to offer a regulated investment vehicle for digital assets. Should the SEC grant approval, the 21Shares Polkadot ETF would be listed on the Cboe BZX Exchange, with Coinbase serving as the custodian of the DOT reserves.

21Shares has been actively expanding its suite of cryptocurrency investment products. In addition to the 21Shares Polkadot ETF, the firm has recently filed applications for ETFs based on Ripple’s XRP and Solana’s SOL, complementing its existing offerings linked to Bitcoin (BTC) and Ethereum (ETH).

Furthermore, the company has proposed allowing its 21Shares Core Ethereum ETF to participate in staking, potentially providing additional returns for investors. The proposal emphasizes that staking would be restricted to Ether owned by the Trust, excluding delegated staking or third-party services.

21Shares Expands Crypto ETF Offerings Amid Market Growth

As the SEC reviews 21Shares’ application, the fate of the Polkadot ETF will largely depend on investor demand and regulatory developments. According to Bloomberg ETF analyst James Seyffart, the success of any crypto ETF ultimately hinges on whether investors are willing to allocate capital to the fund.

idk who needs to hear this but the market will decide where value lies and if there's value in launching such a product. If no one puts money into a Polkadot ETF — it will close. People are free to launch whatever ETFs are deemed to be allowed by the SEC
— James Seyffart (@JSeyff) January 31, 2025

The introduction of a Polkadot ETF could have significant market implications, given Polkadot’s focus on blockchain interoperability. The move follows an earlier, unsuccessful attempt by Tuttle Capital Management to introduce a 2x leveraged Polkadot ETF. The firm had initially included the leveraged product as part of a broader filing for 10 crypto ETFs but later withdrew all its leveraged ETF proposals.

Meanwhile, Grayscale Investments, one of the largest digital asset managers, is also exploring the launch of a Polkadot spot ETF. The growing interest in Polkadot-based investment vehicles reflects the broader market trend toward expanding regulated crypto exposure beyond Bitcoin and Ethereum.

Regulatory Shifts Could Influence Polkadot ETF Approval

However, volatility and regulatory uncertainty remain significant hurdles. The SEC has yet to clarify whether DOT should be classified as a financial security under U.S. law.

In its filing, 21Shares acknowledged that the ETF’s performance would directly mirror the market fluctuations of Polkadot, highlighting the inherent risks associated with cryptocurrency investments.

The regulatory environment for digital assets has been shifting, particularly following the resignation of SEC Chairman Gary Gensler on January 20. Gensler, known for his cautious stance on cryptocurrency regulation, stepped down amid a surge in new ETF applications. Within hours of his departure, multiple crypto ETF filings were submitted to the SEC, reflecting renewed optimism about regulatory approvals.

Mark Uyeda, who has publicly advocated for a more open approach to crypto regulations, is expected to influence the SEC’s policy direction. His potential leadership could lead to a more favorable stance on digital asset investment products, including the proposed Polkadot ETF.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.