21Shares Files to Launch Spot Polkadot ETF in the U.S.
As the number of altcoin ETF filings rises in the U.S., 21Shares has filed with the U.S. SEC to launch a spot Polkadot ETF. The firm aims to list the 21Shares Polkadot Trust on the Cboe BZX exchange, with Coinbase as the custodian for the DOT token. The filing was submitted on January 31.This move comes four years after 21Shares launched the world’s first Polkadot exchange-traded product (ETP) on the Swiss SIX exchange in February 2021. Now, the firm hopes to replicate that success by offering U.S. investors a chance to invest in Polkadot through an ETF.Polkadot’s Price Performance – No One Knows How It’ll GoHowever, the filing comes with a warning: there’s no guarantee that Polkadot’s price will remain stable, either short-term or long-term. This reflects the unpredictable nature of cryptocurrencies, even in ETF form. The firm made it clear, saying,“There is no assurance that DOT will retain its value in the long or intermediate term.”The filing also highlighted potential risks associated with the Polkadot Network. For instance, an increase in DOT’s supply could affect its price. Additionally, there’s a risk that DOT could be classified as a security under federal laws, which could change how it is regulated and traded.The Market Will Decide Polkadot’s ETF SuccessBloomberg analyst James Seyffart shared his view on the ETF, stating that the market will determine whether it succeeds or fails. “If no one puts money into a Polkadot ETF, it will close,” he said on X. “People are free to launch whatever ETFs are allowed by the SEC.” His comment suggests that investor demand will be key to the ETF’s success.idk who needs to hear this but 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— James Seyffart (@JSeyff) January 31, 2025 A Fresh Wave Of ETF Applications21Shares’ filing is part of a larger trend. After SEC Chairman gary gensler gary gensler Gary Gensler is a pioneer and the current chair of the U.S. Securities and Exchange Commission. He has extensive experience that spans Wall Street, government regulation, and an angel teaching about cryptocurrencies and blockchain at MIT. Gary S. Gensler was on born October 18, 1957, in Baltimore, Maryland.He graduated from Pikesville High School in 1975, where he was later given a Distinguished Alumnus award. He also earned a degree in economics.Gensler served in the United States Department of the Treasury as Assistant Secretary for Financial Markets from 1997 to 1999, then as Undersecretary for Domestic Finance from 1999 to 2001He has expressed his desire to present crypto-related approach changes later on that include token commitments, decentralized finance, stablecoins, guardianship, exchange-traded resources, and advancing stages. Chairman departure earlier this month, there has been a surge in altcoin ETF filings. Grayscale has applied for ETFs based on DOGE, XRP, Litecoin, and Solana, alongside launching a Bitcoin Miners ETF.Other asset managers, like Osprey Funds and REX Shares, also filed to launch ETFs for memecoins like Dogecoin, Official Trump (TRUMP), and Bonk. This spike in ETF applications highlights the growing interest in altcoins, particularly after Gensler’s resignation.Never Miss a Beat in the Crypto World!Stay ahead with breaking news, expert analysis, and real-time updates on the latest trends in Bitcoin, altcoins, DeFi, NFTs, and more. Daily Get real-time crypto news, market insights, and blockchain updates. Weekly Stay updated with major trends, funding news, and price analysis. Monthly Receive a detailed report with market analysis and expert predictions.