"21Shares Seeks SEC Approval for Polkadot ETF Amidst Altcoin Wave"

21Shares Files for Polkadot ETF with the SEC

Asset management firm 21Shares has filed an S-1 with the SEC for a Polkadot ETF, seeking to list shares on the Cboe BZX Exchange. The proposed 21Shares Polkadot Trust will mirror its current Polkadot Trust, tracking DOT prices using the CME CF Polkadot-Dollar Reference Rate. Coinbase Custody will hold the assets, following a passive investment strategy that avoids leverage, derivatives, and active trading.

The filing comes amidst a wave of altcoin ETF applications following the resignation of crypto skeptic Gary Gensler as SEC chair. Earlier this week, Tuttle Capital Management proposed a 2x leveraged Polkadot ETF as part of a package of 10 leveraged crypto ETFs. However, Tuttle Capital later withdrew its filing for all 2x leveraged ETFs.

Since Gensler's departure, the SEC has received a wave of altcoin ETF applications. Grayscale launched a Dogecoin Trust with a 2.5% management fee, converting it into an ETF application within hours. The firm also submitted ETF applications for XRP, Litecoin, and Solana, in addition to its recent Bitcoin Miners ETF.

The SEC is likely to wait for Paul Atkins, President Trump's nominee, to become the permanent chair before approving further altcoin ETFs. Currently, Mark Uyeda leads the SEC on an interim basis. When the SEC approves another altcoin fund, Litecoin may be the first, as it is already classified as a non-security due to being a fork of Bitcoin.