Asset management firm 21Shares filed an S-1 with the SEC for a Polkadot ETF. The company plans to list shares on the Cboe BZX Exchange.
The proposed 21Shares Polkadot Trust will mirror its current Polkadot Trust.
Polkadot Joins the Altcoin ETF Race
The 21Shares Polkadot ETF will track DOT prices using the CME CF Polkadot-Dollar Reference Rate. According to the filing, Coinbase Custody will hold the assets.
The fund will follow a passive investment strategy. It will avoid leverage, derivatives, and active trading. Notably, Polkadot’s price hasn’t reacted at all to this announcement. DOT remains down by 10% in January.
“The market will decide where value lies and if there’s value in launching such a product. If no one puts money into a Polkadot ETF – it will close. People are free to launch whatever ETFs are deemed to be allowed by the SEC,” wrote analyst James Seyffart.
This filing comes after Tuttle Capital Management proposed a 2x leveraged Polkadot ETF earlier this week as part of a package of 10 leveraged crypto ETFs.
However, ETF analyst Eric Balchunas confirmed that Tuttle Capital withdrew its filing for all 2x leveraged ETFs.
Since Gary Gensler left his position earlier this month, the SEC has received a wave of altcoin ETF applications. Earlier today, Grayscale launched a Dogecoin Trust. The trust offers investors exposure to DOGE with a 2.5% management fee amid rising demand.
Within hours, Grayscale converted the trust filing into an ETF application. This was lik
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Author: Mohammad Shahid
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