Nasdaq Files to List a Polkadot (DOT) ETF Product Managed by 21Shares

The Nasdaq Stock Market has submitted Form 19b-4 to the U.S. SEC to list an ETF for Polkadot, managed by asset manager 21Shares.

Nasdaq (NASDAQ:NDAQ) has submitted Form 19b-4 to the U.S. Securities and Exchange Commission (SEC) for an exchange-traded fund (ETF) on Polkadot, which will be managed by asset manager 21Shares.

According to the filing, Nasdaq is planning to list and trade shares of the 21Shares Polkadot Trust as commodity-based trust shares.

This latest move follows 21Shares’ initial filing of a registration statement with the SEC in January to launch the Polkadot Trust, a crypto ETF. At the time of the initial filing, 21Shares stated that it expected to list the trust on the Cboe BZX Exchange. However, Nasdaq is now putting forth an updated filing to list shares of the 21Shares Polkadot Trust.

What to Know

Under the sponsorship of 21Shares US LLC, the Trust will be investing in DOT, the native token of the Polkadot Network, which will be held in the custody of Coinbase (NASDAQ:COIN).

The Trust will track the performance of DOT through the CME CF Polkadot-Dollar Reference Rate - New York Variant, calculated by CF Benchmarks Ltd.

The filing adds that the Trust will not engage in speculative trading or leverage and will only hold DOT. When the Trust sells DOT tokens, it’s to redeem shares and it uses the proceeds to settle the transaction in cash.

For the creation and redemption of shares, the Trust will transfer DOT in or out in exchange for blocks of 10,000 shares. Authorized financial firms will provide cash to buy shares and the Trust will use that money to acquire DOT through a third party.

What’s Next

The filing of Form 19b-4 brings the Polkadot ETF a step closer to approval. Next up, the SEC will need to acknowledge the form submitted by Nasdaq. Upon acknowledgment, an eight-month timeline (240 days) begins for the SEC to decide whether to approve or reject the ETF.

It’s worth noting that 21Shares is not the only asset manager applying to list a Polkadot ETF. Prominent asset manager Grayscale has also submitted an application to list a Polkadot ETF.

DOT is currently the 21st biggest cryptocurrency by market cap, with a valuation of $6.71 billion. The news of the filing by Nasdaq has not yet impacted its price, as the token is down 1.3% in 24 hours.