Grayscale Files for Polkadot ETF with SEC
Digital asset management company Grayscale has submitted an application to the US Securities and Exchange Commission (SEC) to launch a Polkadot exchange-traded fund (ETF) on the Nasdaq exchange. The ETF aims to provide investors exposure to Polkadot’s DOT by tracking the token’s price performance.
Key Details of the Filing
The filing proposes listing and trading shares of the Grayscale Polkadot Trust (DOT) under Nasdaq Rule 5711(d) (Commodity-Based Trust Shares). The ETF’s sponsors include Grayscale Operating LLC and Grayscale Investments Sponsors LLC, subsidiaries of Digital Currency Group, Inc. CSC Delaware Trust Company will act as the trustee, and Coinbase Custody Trust Company, LLC as the custodian. BNY Mellon Asset Servicing will handle administration and transfer duties, while Foreside Fund Services, LLC will manage distribution and marketing. CoinDesk Indices, Inc. will serve as the trust’s index provider.
Second Polkadot ETF Application This Year
This marks the second Polkadot ETF application submitted this year, with asset management firm 21Shares also filing with the SEC to launch a spot Polkadot ETF. Despite the increasing interest in crypto ETFs, some market analysts express skepticism about the success of a Polkadot-focused fund.
Market Analysts’ Perspective
Bloomberg Intelligence analyst James Seyffart noted the criticism faced by the Polkadot ETF filing but emphasized that the market will ultimately determine the value of such products. He stated, “The market will decide where value lies. If no one puts money into a Polkadot ETF it will close.”
Grayscale’s Diversified Crypto Portfolio
Grayscale’s application reflects its ambition to expand its range of crypto ETF offerings. If approved, the Polkadot ETF will join the firm’s existing portfolio of crypto products, including ETFs focused on assets like Bitcoin and Ethereum.
In January, Grayscale applied to convert its XRP Trust into an ETF and announced plans for a Cardano ETF. Additionally, the company established a trust to provide institutional investors with access to Dogecoin. The SEC recently acknowledged Grayscale’s Dogecoin and XRP ETF applications, initiating the regulatory review process that will determine the fate of these funds.
