Nasdaq Seeks SEC Approval for 21Shares Polkadot ETF
Financial firms are racing to launch exchange-traded products for alternative cryptocurrencies like Polkadot.
Nasdaq has filed paperwork with the Securities and Exchange Commission seeking approval to list and trade shares of the 21Shares Polkadot Trust, as firms have increasingly begun to target small-cap cryptocurrencies.
According to the regulatory document filed Tuesday, 21Shares aims to track the performance of DOT, Polkadot's native token, through a passive investment vehicle that would hold the actual cryptocurrency in custody with Coinbase.
The fund would use the CME CF Polkadot-Dollar Reference Rate as its benchmark, calculated based on trade flow from major DOT trading platforms.
The application represents the latest push by major financial institutions to create regulated investment vehicles for emerging blockchain networks, potentially helping Polkadot reach mainstream investors who prefer traditional brokerage accounts.
The asset manager already offers Polkadot exposure through products traded on European exchanges, where it has established a presence in the digital asset space.
Beyond Bitcoin and Ethereum
Ethereum co-founder Gavin Wood created Polkadot as a system designed to connect different blockchain networks and enable them to communicate with each other.
The filing follows 21Shares' initial registration statement submitted in January and parallels Grayscale Investments' recent application for its own Polkadot ETF. Both companies have been actively expanding their cryptocurrency product offerings.
Read More: Nasdaq Seeks SEC Approval for Grayscale Polkadot ETF
The crypto ETF landscape has evolved rapidly under the Trump administration, with acting SEC Chair Mark Uyeda overseeing applications for various cryptocurrencies. Recent filings include products focused on Solana, XRP, and Dogecoin.
The recent price action shows DOT rising along the broader crypto market, with its value gaining 5% in the past day, though it has lost 10.2% over the last month, according to CoinMarketCap data.
The SEC will now begin its review process, which typically starts with a 45-day evaluation period that can be extended as needed before making a final decision on the application.
