Grayscale Applies to SEC for Polkadot ETF on Nasdaq

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Veronika Rinecker

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Veronika Rinecker

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Veronika Rinecker is based in Germany and studied international journalism and media management. She specializes in reporting on topics such as politics and regulation, energy, blockchain, and…

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Grayscale Applies to SEC for Polkadot ETF on Nasdaq

Grayscale Investments, a crypto asset-management company, has officially submitted a filing to the US Securities and Exchange Commission (SEC) to launch a Polkadot exchange-traded fund (ETF) on Nasdaq.

The proposed ETF aims to provide investors with direct exposure to Polkadot’s native token, DOT, by tracking its price performance.

Key Players in Grayscale’s Polkadot ETF Proposal

According to the filing dated Feb. 25, Grayscale intends to list shares of the Grayscale Polkadot Trust under Nasdaq Rule 5711(d), which pertains to Commodity-Based Trust Shares.

Grayscale Operating LLC and Grayscale Investments Sponsors LLC, both subsidiaries of Digital Currency Group, Inc., are named as the ETF’s sponsors in the application. Meanwhile, CSC Delaware Trust Company will serve as the trustee, and Coinbase Custody Trust Company, LLC will act as the custodian.

Additionally, BNY Mellon Asset Servicing is set to manage administrative and transfer duties, while Foreside Fund Services, LLC will oversee distribution and marketing efforts. CoinDesk Indices, Inc. will be responsible for providing index services to the trust.

The filing starts a 45-day review period for the regulator to acknowledge the filing. The SEC can approve, or disapprove the application or extend the review period.

Growing Interest in Polkadot ETFs

This marks the second application for a Polkadot ETF in 2025.

On Jan. 31, asset manager 21Shares also submitted a request to the SEC to launch a spot Polkadot ETF.

It comes four years after 21Shares took a step forward by introducing a similar investment product in Switzerland. In February 2021, the asset manager launched the world’s first Polkadot ETP on the Swiss SIX exchange.

Despite the increasing interest in crypto ETFs, some industry analysts remain cautious about the potential success of a Polkadot-focused fund. Bloomberg Intelligence analyst James Seyffart pointed out in his Feb. 1 X post that the filing has been met with considerable skepticism:

“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.”

Altcoin ETFs on the Rise

Asset managers are not just looking at Polkadot.

Several firms have applied to launch ETFs for other altcoins, including Solana (SOL), XRP (XRP), Cardano (ADA) and Litecoin (LTC).

On Jan. 31, Grayscale itself, which already offers Bitcoin (BTC) and Ether (ETH) ETFs, filed with the SEC to convert its XRP Trust into an ETF, and on Feb. 10 filed to list a spot Cardano ETF.

On Feb. 21, Franklin Templeton filed for a spot Solana ETF, aiming to bring SOL exposure to traditional investors.

CoinShares also submitted applications for XRP and Litecoin ETFs, with the SEC acknowledging them the same month. After adding the CoinShares Litecoin ETF and CoinShares XRP ETF to the Federal Register on Feb. 19, the SEC opened a 21-day comment period for public feedback on the filings.

The agency has also already accepted spot XRP ETFs and other applications from several firms, including 21Shares, Bitwise, and Grayscale.

On Jan. 29, Bitwise also submitted an S-1 registration application to the SEC to launch a spot Dogecoin (DOGE) ETF.

Bloomberg analysts expect some of these altcoin ETFs to be approved by 2025. Eric Balchunas and James Seyffart predict a 90% chance that the SEC will approve Litecoin ETFs.

XRP ETFs are also in line for regulatory approval. Balchunas and Seyffart estimate a 65% chance that the SEC will greenlight spot XRP ETFs.

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