"21Shares Seeks SEC Nod for Polkadot ETF Amid Altcoin Rush"

21Shares Files for Spot Polkadot ETF with SEC

Asset management firm 21Shares has filed an S-1 with the SEC for a Polkadot ETF, aiming 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 market will ultimately decide the value and success of the Polkadot ETF, as investor demand is crucial for its launch and sustainability. Analyst James Seyffart emphasizes that if no one puts money into the ETF, it will close, highlighting the importance of market forces in determining the product's viability.

This 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.

Grayscale, another prominent asset manager, has also submitted ETF applications for XRP, Litecoin, and Solana, in addition to its recent launch of a 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 under the temporary leadership of Mark Uyeda.

The SEC may delay the approval of additional altcoin ETFs until Atkins takes office, but Litecoin could be the first to receive approval, given its classification as a non-security and the commission's acknowledgment of Canary Capital's Litecoin ETF application.