21Shares Officially Files for a Spot Polkadot ETF with the SEC, Seeking Approval to List and Trade Shares

Nasdaq has officially filed Form 19b-4 with the SEC, seeking approval to list and trade shares of the 21Shares Polkadot Trust, a spot Polkadot ETF.

Nasdaq has filed Form 19b-4 with the SEC on behalf of 21Shares to list and trade shares of the 21Shares Polkadot Trust, a spot Polkadot ETF, in the United States.

The application marks a significant step toward providing investors with a regulated and accessible way to invest in Polkadot’s native token, DOT, which is used for paying fees and voting on network changes.

If approved, the ETF will track the spot price of DOT, which currently has a market capitalization of approximately $6.4 billion, making it the 27th largest cryptocurrency, according to CoinGecko. The fund will be managed by 21Shares US LLC, and Coinbase Custody will serve as the digital asset custodian for the underlying DOT tokens.

Similar to the 21Shares Bitcoin and Ethereum ETFs, this fund will use the CME CF Polkadot Index as its benchmark. The variable premium structure will be disclosed in the prospectus.

In addition to 21Shares, Grayscale Investments is also applying to launch a spot Polkadot ETF, showcasing the strong institutional interest in expanding this asset class.

Earlier this year, the SEC rejected several proposals from firms like WisdomTree and Krypto Money to launch spot bitcoin ETFs, despite approving several bitcoin futures ETFs in 2021.

Aside from that, 21Shares is also expanding its ETF offerings. The Firm is already seeking regulatory approval for similar ETFs based on XRP and Solana (SOL). This strategic expansion highlights 21Shares’ ambition to become a leading provider of diverse digital asset investment products.

Furthermore, 21Shares is proposing the capability to engage in staking for its 21Shares Core Ethereum ETF in a new filing with the SEC. This move aims to enhance the returns generated by the ETF for investors.

The firm’s proposal will see only the Trust-held Ethereum being used for staking purposes to help secure the Ethereum network.

Hashdex is also including staking in its own Ethereum ETF filing, with both firms making the additions to their existing applications.

These developments come as the crypto industry eagerly anticipates the SEC’s verdict on several spot price crypto ETF proposals, including those from firms like ARK Invest, Cathie Wood’s investment firm, and Bitwise Asset Management.

The SEC has repeatedly postponed or denied a number of cryptocurrency-related ETF proposals, often citing concerns about market manipulation and the protection of investors.

The agency’s stance on these matters will be critical in determining the future of 21Shares’ Polkadot ETF application and the broader digital asset investment space.