The SEC’s decision on the Polkadot ETF could set the tone for broader regulatory acceptance of crypto investment products.
By Chimamanda U. Martha
Edited by Julia Sakovich
Updated
3 mins read
The race to bring more cryptocurrency exchange-traded funds (ETFs) to the market is heating up as Grayscale Investments takes a bold step toward launching a Polkadot ETF. Nasdaq has officially submitted a Form 19b-4 to the US Securities and Exchange Commission (SEC) on behalf of Grayscale, seeking approval to list and trade the investment product on its exchange.
According to the official document, this proposal presupposes listing and trading “shares of the Grayscale Polkadot Trust (DOT) under Nasdaq Rule 5711(d).
If approved, the ETF will track the real-time price of Polkadot’s native cryptocurrency DOT. The move highlights the growing competition among asset managers aiming to introduce more digital asset investment products to institutional and retail investors.
Grayscale’s proposed ETF is now set to go through the SEC’s multi-step approval process. The agency will first acknowledge or decline to act on the application. If accepted for review, the proposal will undergo a detailed assessment to determine whether it meets federal securities laws before progressing to further scrutiny or facing potential rejection.
With this filing, Grayscale becomes the second firm to seek regulatory approval for a Polkadot ETF. In January, 21Shares took the lead by filing a Form S-1 with the SEC, marking its own bid to launch a similar product.
Unlike Form 19b-4, which is typically filed by stock exchanges like Nasdaq and the New York Stock Exchange (NYSE) to list new securities, Form S-1 is submitted directly by companies seeking to register new financial products. Both forms are necessary for a new ETF to be approved.
Following the SEC’s approval of spot Bitcoin and Ethereum ETFs last year, a wave of new crypto ETF applications has flooded the agency. Grayscale itself is actively expanding its crypto offerings, with ongoing interest in launching ETFs tied to assets like XRP XRP $2.24 24h volatility: 5.6% Market cap: $130.13 B Vol. 24h: $3.04 B , Solana SOL $131.5 24h volatility: 4.7% Market cap: $67.24 B Vol. 24h: $3.83 B , Dogecoin DOGE $0.18 24h volatility: 7.1% Market cap: $27.08 B Vol. 24h: $1.48 B , Cardano ADA $0.70 24h volatility: 4.9% Market cap: $25.27 B Vol. 24h: $740.16 M , Litecoin LTC $88.94 24h volatility: 5.5% Market cap: $6.73 B Vol. 24h: $437.89 M , and now Polkadot DOT $4.32 24h volatility: 6.8% Market cap: $6.56 B Vol. 24h: $218.89 M .
Meanwhile, other firms are also vying for ETF approvals. Earlier this month, the SEC officially acknowledged Canary Capital’s application to offer a Solana-based ETF.
Last month, Tuttle Capital Management proposed a leveraged 2x Polkadot ETF as part of a broader filing for ten leveraged crypto ETFs.
Additionally, 21Shares has applied for an ETF linked to Ripple’s XRP, while VanEck has submitted a filing for an “Onchain Economy” ETF. This fund is designed to invest in a range of crypto-related companies, including software developers, mining firms, exchanges, infrastructure providers, and payment processors.
Unlike direct crypto ETFs, VanEck’s proposed fund would allocate capital to digital asset-linked instruments such as commodity futures contracts rather than holding cryptocurrencies directly.
With major asset managers pushing for new crypto investment vehicles, all eyes remain on the SEC’s next move. Approval of a Polkadot ETF could signal a broader acceptance of digital assets in traditional finance, while continued delays would underscore the regulatory hurdles still facing the crypto industry.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Chimamanda is a crypto enthusiast and experienced writer focusing on the dynamic world of cryptocurrencies. She joined the industry in 2019 and has since developed an interest in the emerging economy. She combines her passion for blockchain technology with her love for travel and food, bringing a fresh and engaging perspective to her work.
