Nasdaq Files to List 21Shares Polkadot (DOT) Trust, Expanding Into Small-Cap Cryptos

According to the regulatory document filed Tuesday, 21Shares aims to track the performance of DOT, Polkadot's native token, through a passive investment vehicle

Nasdaq is applying to list and trade shares of the 21Shares Polkadot Trust, continuing a trend of firms targeting small-cap cryptocurrencies for ETF approval.

According to the regulatory filing, 21Shares aims to track the performance of Polkadot's native token, DOT, through a passive investment vehicle that would hold the actual cryptocurrency in custody with Coinbase.

The fund would use the CME CF Polkadot-Dollar Reference Rate as its benchmark, calculated based on trade flow from major DOT trading platforms.

The application represents the latest push by major financial institutions to create regulated investment vehicles for emerging blockchain networks, potentially helping Polkadot reach mainstream investors who prefer traditional brokerage accounts.

The asset manager already offers Polkadot exposure through products traded on European exchanges, where it has established a presence in the digital asset space.

Emerging From Bitcoin and Ethereum

Polkdot, the brainchild of Ethereum co-founder Gavin Wood, is a system designed to connect different blockchain networks and enable them to communicate and cooperate with each other. It serves as a layer-1 blockchain network, similar to Bitcoin or Ethereum, but its goal is to interlink these networks rather than compete with them directly.

The filing follows 21Shares' initial registration statement submitted in January and parallels Grayscale Investments' recent application for its own Polkadot ETF. Both companies are expanding their cryptocurrency product offerings.

Both 21Shares and Grayscale have been accumulating and managing significant cryptocurrency holdings, which they plan to contribute to the trust in order to launch the Polkadot ETF.

The crypto ETF landscape is quickly evolving under the Trump administration, with acting SEC Chair Mark Uyeda overseeing applications for a variety of cryptocurrencies.

Recently, there have been filings for products focused on Solana, XRP, and Dogecoin, highlighting the expanding scope of digital assets targeted by major asset managers for the U.S. market.

The SEC will now begin its review process, which typically starts with a 45-day evaluation period that can be extended as needed before making a final decision on the application.

The recent price action shows DOT rising along the broader crypto market, with its value gaining 5% in the past day, though it has lost 10.2% over the last month, according to CoinMarketCap data.