"21Shares Files for Polkadot ETF Amidst Crypto Market Downturn"

Investment management firm 21Shares has submitted paperwork to launch a spot Polkadot ETF, following the influx of new crypto-based exchange-traded funds (ETFs) in the United States. The 21Shares Polkadot ETF, as outlined in an S-1 registration statement filed with the Securities and Exchange Commission (SEC), will track the performance of DOT, the native token of the Polkadot Network, and use the CME CF Polkadot-Dollar Reference Rate to monitor DOT prices. The ETF is expected to trade on the Cboe BZX Exchange, with Coinbase Custody serving as the custodian.

DOT, the 24th largest digital coin by market cap, has witnessed lackluster price performance in recent times. Over the last 24 hours, its price has plunged 11.1%, and it’s down 25.6% in the past month. The S-1 filing noted that there are no guarantees of DOT’s price, either in the short or long term, after the ETF goes live. “There is no assurance that DOT will maintain its value in the long or intermediate term,” the filing read. In the event that the price of DOT declines, the Sponsor expects the value of the Shares to decline proportionately.”

According to Bloomberg’s ETF analyst James Seyffart, the market will ultimately decide if there is demand for a spot DOT product. “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,” Seyffart explained in his Feb. 1 post on Twitter (aka X).

21Shares’ filing comes as the SEC undergoes a shakeup, with pro-crypto Acting Chair Mark Uyeda replacing Gary Gensler, fueling industry hopes for approval under a President Trump administration. Trump promised pre-election to shore up US regulations while making the U.S. the “crypto capital of the planet.” Gensler’s tenure, which started in April 2021, featured lawsuits against high-profile crypto companies like Coinbase and Binance and a heavy crackdown on unregistered securities offerings. His last day of work was January