21Shares Files An Application For A Polkadot ETF With The SEC!

The asset management company 21Shares has recently filed an application with the Securities and Exchange Commission (SEC) to launch an exchange-traded fund (ETF) backed by Polkadot (DOT). According to the filing on January 31, 2025, the goal is to list the 21Shares Polkadot Trust on the Cboe BZX crypto exchange, with Coinbase as the custodian of the DOT.

Crypto: 21Shares files for a Polkadot ETF

21Shares has just submitted an S-1 application to the SEC to launch a Polkadot (DOT) ETF in the United States. This fund would allow investors to access DOT without having to hold it directly. This initiative reflects the growing interest in financial products based on crypto.

Furthermore, the 21Shares filing comes after the resignation of SEC Chairman Gary Gensler on January 20, a notorious skeptic of cryptocurrencies. This resignation triggered a wave of ETF applications for crypto, both before and after this date.

Will Polkadot be a viable investment?

Polkadot is currently the 18th largest crypto by market capitalization. However, its recent performance has been modest, with a 5.16% decline over the past 12 months and a 10.48% decline over the last month. At the time of writing this article, the price of DOT was at $6.21.

The filing with the SEC indicates that there are no guarantees regarding the future performance of DOT, whether short- or long-term. In the event of a decline in the price of DOT, the value of ETF shares would be expected to decrease proportionally.

Additionally, there are potential risks associated with the Polkadot network, including a possible increase in the supply of DOT available for trading and the possibility that DOT may be classified as a security under federal laws. Furthermore, if the SEC approves such an ETF and it fails to attract funds, it will simply be closed, according to James Seyffart, a crypto analyst.

The approval of a Polkadot ETF by the SEC could thus broaden access for investors, but uncertainties remain regarding its viability. The demand in the crypto market and regulation will determine its long-term success.