Grayscale Seeks SEC Nod for Polkadot ETF

Nasdaq has filed with the U.S. Securities and Exchange Commission (SEC) to list an exchange-traded fund (ETF) from Grayscale Investments that will track the Polkadot network's native token, DOT. If approved, the Grayscale Polkadot Trust will join the asset manager's growing suite of publicly traded crypto funds.

The filing is part of a trend of applications from exchanges and asset managers seeking to list ETFs tied to alternative cryptocurrencies, or altcoins. The SEC must review and approve the filings before trading can commence.

Grayscale already lists two spot Bitcoin (BTC) ETFs and a spot Ether (ETH) ETF. It is also seeking to list ETFs holding Solana (SOL), Litecoin (LTC), XRP (XRP), Dogecoin (DOGE), and Cardano (ADA). Additionally, the asset manager is seeking permission to list an ETF holding a diversified basket of cryptocurrencies, including several altcoins.

Grayscale operates dozens of single-asset crypto funds that are not traded on public exchanges. In recent months, the company has launched investment funds for the Pyth Network's native token, Dogecoin, Lido's governance token (LDO), and Optimism's governance token (OP).

Grayscale is among several asset managers seeking the SEC's approval to list altcoin ETFs. Other issuers have proposed ETFs for altcoins such as Hedera (HBAR) and Official Trump (TRUMP). Issuers are also waiting on SEC approval for proposed changes to existing ETFs, including allowances for staking, options, and in-kind redemptions.

The SEC's stance on cryptocurrency has evolved over time. In 2024, the agency approved spot Bitcoin and Ether ETFs but has been more cautious with proposed ETFs tied to other cryptocurrencies. Bloomberg Intelligence estimates the odds of an XRP ETF approval in the U.S. at 65%, with higher odds for Litecoin and Solana ETFs at 90% and 70%, respectively.