NewsBTC

1 February 2025

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21Shares Files Spot Polkadot ETF Application With SEC

21Shares has submitted a spot Polkadot (DOT) ETF application to the US SEC, aiming to provide direct exposure to Polkadot for investors without needing to hold the cryptocurrency. The proposed 21Shares Polkadot Trust will be listed on the CBOE BZX Exchange, with Coinbase as the custodian for DOT tokens.

Key Points

• The ETF aims to simplify the purchase process for both large investors and retail buyers.
• This move reflects growing interest in diversified crypto ETFs beyond Bitcoin and Ethereum.
• The regulatory status of Polkadot is uncertain, which may impact the SEC's approval process.
• Polkadot's price has declined about 5% over the past year and more than 10% in the past month, currently trading at approximately $6.42.
• The ETF filing includes warnings about the asset's volatility and potential risks.

Concerns regarding Polkadot's classification as a security could complicate the ETF’s approval. The Web3 Foundation has positioned DOT as a digital asset, but the evolving SEC stance on such assets remains a significant factor.