Asset management company 21Shares has officially filed with the U.S. Securities and Exchange Commission (SEC) for an ETF license for Polkadot (DOT). This is part of the trend of expanding altcoin ETFs following the departure of SEC Chairman Gary Gensler, as the market hopes for a more open regulatory environment for crypto.
Polkadot ETF – A Big Gamble?
🔹 21Shares Polkadot Trust will be listed on the Cboe BZX Exchange and will track the price of DOT in USD.
🔹 Coinbase acts as the asset custodian.
🔹 This is not the first time 21Shares has launched an ETF #Polkadot – the company has had a Polkadot ETP in Switzerland since 2021. However, this fund is struggling with modest trading volume of only 240,000 shares in the past 90 days.
The Market Decides Everything
Although it is a notable move, the Polkadot ETF faces much skepticism from analysts. Expert from #BloombergIntelligence James Seyffart stated:
"This is one of the most criticized ETF filings I have ever seen."
However, he also emphasized:
"The market will decide everything. If no one invests in the Polkadot ETF, it will soon be shut down."
Current Context of Polkadot
Polkadot was once one of the top 10 cryptocurrencies with a market cap of 51 billion USD in 2021. But now, $DOT has fallen to the 19th position, with a price of only 6.35 USD and a market cap of under 10 billion USD.
Nevertheless, this ETF is not alone. A series of other altcoin ETF filings have also been submitted recently, including Litecoin, $XRP , Solana, and $DOGE . Analysts believe that if Donald Trump returns to the White House, crypto policy in the US could become more open, creating momentum for these ETF funds to grow.
🚀 Can the Polkadot ETF succeed, or is this just a quick experiment that the market will discard? Let's wait and see!
