Asset management firm 21Shares has officially filed an S-1 form with the SEC for a Polkadot (DOT) ETF. If approved, the ETF will be listed on the Cboe BZX Exchange, offering investors a new way to gain exposure to Polkadot without directly holding the asset.
Despite this major development, Polkadot’s price has remained unchanged, continuing its 10% decline in January.
Polkadot Joins the Altcoin ETF Race
The 21Shares Polkadot ETF will track DOT prices using the CME CF Polkadot-Dollar Reference Rate. According to the filing, Coinbase Custody will serve as the fund’s custodian.
The ETF will follow a passive investment strategy, meaning it won’t use leverage, derivatives, or active trading.
This filing comes shortly after Tuttle Capital Management proposed a 2x leveraged Polkadot ETF, which was part of a package of 10 leveraged crypto ETFs. However, ETF analyst Eric Balchunas confirmed that Tuttle Capital has withdrawn all leveraged ETF applications.
Meanwhile, Grayscale has launched a Dogecoin Trust, which was quickly converted into an ETF application. This marks the first time a crypto trust transitioned to an ETF filing on the same day.
Grayscale has also submitted ETF applications for XRP, Litecoin, and Solana, following the launch of its Bitcoin Miners ETF, which offers exposure to BTC-related companies without direct crypto investments.
Will the SEC Approve the Polkadot ETF?
Along with 21Shares’ Polkadot ETF, the firm also has a pending XRP ETF application. Many analysts believe an XRP ETF approval is likely, but the SEC may delay further altcoin ETFs under its temporary leadership.
Currently, Mark Uyeda serves as interim SEC chair while Paul Atkins, a former SEC commissioner, awaits confirmation as the permanent chair.
If the SEC approves another altcoin ETF, Litecoin (LTC) may be first in line. The commission has already acknowledged Canary Capital’s Litecoin ETF application. Since LTC is classified as a non-security due to being a Bitcoin fork, its approval may come sooner than other altcoin ETFs.
