Will Grayscale’s Polkadot ETF Boost DOT Price Beyond $4.43?
Nasdaq has requested approval from the US Securities and Exchange Commission (SEC) to list the Grayscale Polkadot (DOT) Trust as an exchange-traded fund (ETF). If approved, this would be the latest addition to Grayscale’s expanding suite of publicly traded cryptocurrency funds. This comes amid increasing applications for altcoin ETFs as asset managers seek to capitalize on the market’s growing interest. Grayscale and 21Shares Seek SEC Approval for Polkadot ETF Grayscale has submitted a filing to the SEC to convert its Polkadot Trust into an ETF, allowing broader market participation. The proposed ETF would track the performance of Polkadot (DOT), providing investors exposure without direct token ownership. Nasdaq’s request to list the ETF signifies increasing institutional interest in Polkadot and altcoins in general. Alongside Grayscale, 21Shares has also applied for a Polkadot ETF that would trade on the Cboe BZX Exchange. Bitcoin ETFs have achieved success, spurring asset managers to introduce ETFs that extend beyond Bitcoin and Ethereum investment options. The SEC is beginning a review process to determine if trading these ETFs will start after receiving the applications. The crypto community remains divided over the necessity of a Polkadot-specific ETF, with some questioning its demand. Critics argue that Polkadot lacks the liquidity and institutional interest of larger cryptocurrencies like Bitcoin and Ethereum. However, supporters believe an ETF could enhance adoption and increase DOT’s visibility among traditional investors. Polkadot Price Analysis: Key Resistance and Market Trends Polkadot’s price currently stands at $4.99, reflecting a 4.38% decline in the past 24 hours. The total market cap of Polkadot has increased by over 5% to $7.75 billion as trading volume jumped over 25% in a day, reaching 361.63 million. At present, Polkadot’s fully diluted valuation totals $7.75 Billion, which produces a 4.67% ratio between volume and market capitalization. The price has to reach above $6 to set solid bullish trends while stopping additional price drops. $11 is an essential barrier because it has withstood two attempts, thus making it vital for upward price action. The price breaking above $11 could begin a new upward trend toward $34 because of scarce resistance points ahead. Source: TradingView If the price continues its gradual decline, DOT could search for a strong bottom before attempting a rebound. A speedy price decrease might produce a V-shaped market recovery that results in a powerful upward move. Market participants employ these critical support and resistance levels to maintain their watchful stance toward price forecasting. DOT Market Liquidations The DOT total liquidations chart indicates significant liquidation activity in both long and short positions over time. The market’s price increases triggered major liquidations of short positions, while long positions were affected by price decreases through liquidation. A major short liquidation event occurred when DOT experienced a sharp price increase, catching traders off guard. Source: CoinGlass Market price movements that create powerful shifts in crypto value result in extensive liquidation events, which indicate the effect of market volatility on leveraged positions. The most significant long liquidations happened when DOT’s price surged, suggesting that many traders misjudged short-term trends. Market stability has grown stronger, as demonstrated through reduced liquidation amounts. Polkadot has fluctuated within a broad range, with sharp spikes followed by gradual declines. Market participants remain divided on whether DOT will sustain higher levels or continue searching for a bottom. The approval of a Polkadot ETF could bring renewed investor interest, potentially influencing DOT’s future price trajectory. Introducing a Polkadot ETF could attract institutional investors and increase market liquidity. If approved, the ETF might drive demand for DOT by making it more accessible to traditional investors. The rising adoption rates will boost long-term price momentum.