Grayscale has filed with the Securities and Exchange Commission (SEC) to list and trade a Polkadot exchange-traded fund (ETF) on Nasdaq.
The proposed Grayscale Polkadot Trust ETF, designed to track DOT prices, offers investors a controlled method to access this innovative blockchain network.
This is in addition to aggressively seeking ETFs based on other digital assets, including Litecoin (LTC), XRP, and Solana (SOL).
Grayscale Expanding ETF and Digital Asset Portfolio
Despite Polkadot dropping from the top 10 to number 22 of the largest cryptocurrencies by market capitalization, this development suggests that investors are confident in the cryptocurrency’s long-term future.
Coinbase Custody Trust Company would serve as the fund’s custodian. The ETF would track DOT pricing using the CME CF Polkadot-Dollar Reference Rate.
The structure offers a tried-and-true foundation for institutional investing that has contributed to the success of its previous ETFs, including the Grayscale Ethereum Trust ETF (ETHE).
Additionally, it provides more affordable solutions through “mini” versions of these trusts. Two examples are the Bitcoin Mini Trust ETF (BTC) and the Ethereum Mini Trust ETF (ETH).
In addition to ETFs, the company offers a wide range of digital assets and blockchain-related products, such as the Grayscale Digital Large Cap Fund (GDLC) and the Grayscale DeFi Fund.
Polkadot ETF Competitive and Regulatory Landscape
Along with Grayscale, 21Shares has also applied for a Polkadot ETF that will trade on the Cboe BZX Exchange. Meanwhile, the crypto community is excited and skeptical about both applications, with the latter not seeing a need for a Polkadot-specific fund.
Despite criticism, the SEC’s approval of Bitcoin ETFs has caused asset managers to rush to file for ETFs that track a wide range of altcoins and even pairs of cryptocurrencies. For instance, approving a Bitwise ETF that mixes Bitcoin and Ethereum didn’t take long.
If approved, the Polkadot ETF could set a standard for future alternative cryptocurrency ETFs.
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