21Shares has filed an application with the SEC seeking permission to list its spot Polkadot ETF. If approved, this move will help track the price action of the DOT token, a nod to Polkadot’s position as one of the top cryptocurrencies by market cap.
The proposal suggests 21Shares’ intention to list and trade shares of its Polkadot trust under the Nasdaq Rule. This new filing follows an application submitted by 21Shares earlier this month. It intends to provide investors with access and exposure to the DOT token.
Interestingly, 21Shares is also finalizing plans to secure regulatory approval for an XRP and Solana ETF. The exchange also applied to the SEC to allow its 21Shares Core Ethereum ETF to stake, giving investors a chance to make more profit. According to the proposal, the staking would be limited to the exchange’s ETH holdings to prevent delegated staking.
Other ETF Filings
Aside from 21Shares, Grayscale Investments also applied to the SEC, seeking to launch a spot Polkadot ETF and seek approval to list and trade shares of its Polkadot Trust. Grayscale Investments has also filed for ETFs based on Cardano and XRP, showing its intention to expand its crypto ETF offerings.
Tuttle Capital Management also proposed a leveraged 2x Polkadot ETF as part of an earlier filing for 10 2x leveraged crypto ETFs. However, the filing warned that using leverage amplified returns and increased losses.
Investors could potentially lose their “entire principal” within a trading day. The bid was later withdrawn alongside all the 2x leveraged ETF proposals.
What’s in It for Polkadot?
Polkadot is not left out as the broader cryptocurrency market has seen a downturn. It recorded a 13% drop in the last month. However, the DOT token has seen an 8% jump in the last week, with a significant rise after the ETF filing news.
The rise in institutional interest in Polkadot has led to optimism among analysts. With the Polkadot price currently around $4.3, experts anticipate an incoming rally as more corporations file for a Polkadot ETF.
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