Nasdaq Seeks SEC Approval for Grayscale Polkadot ETF
Diversification push continues as asset manager Grayscale expands crypto ETF offerings beyond bitcoin and ethereum.
Grayscale Investments, which manages more than $20 billion in four crypto-focused ETFs, is among the early movers seeking to launch an exchange-traded fund holding Polkadot, a lesser-known cryptocurrency with a market cap of around $7 billion.
Nasdaq submitted a Form 19b-4 to the Securities and Exchange Commission on Tuesday seeking approval to list and trade shares of the Grayscale Polkadot Trust under the ticker symbol "DOT." Asset manager 21Shares filed to create the 21Shares Polkadot Trust ETF last month.
As the crypto market grows beyond bitcoin and ethereum, Grayscale's latest filing highlights how the industry has moved to create regulated ways to invest in newer blockchain networks, potentially helping Polkadot reach mainstream investors. The filing follows Grayscale's recent applications to convert its XRP Trust into an ETF and to list a spot Cardano ETF.
The Trump administration has influenced the crypto ETF landscape. With Mark Uyeda currently serving as acting SEC chair, the regulatory agency has received numerous ETF applications for various cryptocurrencies, including solana, XRP, and dogecoin.
What is Polkadot?
Polkadot is an open-source blockchain platform designed to enable secure communication between various blockchains, according to CoinMarketCap. Founded by Ethereum co-founder Gavin Wood, Polkadot aims to address issues of interoperability, scalability, and security in the blockchain ecosystem.
The system uses a main chain called the Relay Chain that coordinates with smaller specialized chains, making it possible for different blockchain systems to communicate with each other.
As of midday Tuesday, Polkadot's native token, also called DOT, is trading at $4.41, according to data from CoinMarketCap. With approximately 1.55 billion tokens in circulation, Polkadot's market value is $6.83 billion, making it the 21st largest cryptocurrency by market capitalization.
The price of DOT has declined by 5.1% in the past day and 31% over the last month, according to CoinMarketCap.
The SEC's review process for the proposed ETF begins with the 19b-4 filing, which starts a 45-day review period for the regulator to acknowledge the filing. The Commission can then approve or disapprove the application or extend the review period.
