Digital asset management company Grayscale has applied to the US Securities and Exchange Commission (SEC) to launch a Polkadot exchange-traded fund (ETF) on the Nasdaq exchange.
According to the Feb. 25 filing, the ETF aims to expose investors to Polkadot’s DOT by tracking the token’s price performance.
The filing stated:
“[This] is a proposal to list and trade shares of the Grayscale Polkadot Trust (DOT) (the ‘Trust’) under Nasdaq Rule 5711(d) (‘Commodity-Based Trust Shares’).”
According to the filing, the ETF’s sponsors include Grayscale Operating LLC and Grayscale Investments Sponsors LLC, both subsidiaries of Digital Currency Group, Inc.
The proposal identifies CSC Delaware Trust Company as the trustee and Coinbase Custody Trust Company, LLC as the custodian.
BNY Mellon Asset Servicing will oversee administration and transfer duties, while Foreside Fund Services, LLC will handle distribution and marketing. CoinDesk Indices, Inc. will serve as the trust’s index provider.
Polkadot ETFs
Meanwhile, this is the second Polkadot ETF application submitted this year. Earlier this month, asset management firm 21Shares also filed with the SEC to launch a spot Polkadot ETF.
Despite this rising interest in crypto ETFs, some market analysts remain skeptical about the success of a Polkadot-focused fund.
Bloomberg Intelligence analyst James Seyffart highlighted that Polkadot ETF filing faced significant criticism. However, he emphasized that the market ultimately determines the value of these products.
He wrote:
“The market will decide where value lies. If no one puts money into a Polkadot ETF it will close.”
Grayscale’s expanding portfolio
Grayscale’s application highlights the firm’s ambition to broaden its range of crypto ETF offerings.
If approved, the Polkadot ETF would join the firm’s extensive portfolio of crypto products, which already includes ETFs focused on assets such as Bitcoin and Ethereum.
In January, Grayscale applied to convert its XRP Trust into an ETF and announced plans to launch a Cardano ETF. Additionally, the company created a trust to offer institutional investors access to Dogecoin.
The SEC recently acknowledged Grayscale’s Dogecoin and XRP ETF applications, marking the initial step in the regulatory review process that could ultimately decide the fate of these funds
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