Polkadot News Today: Grayscale Challenges SEC with New ADA and DOT ETF Filings

Grayscale, a leading crypto asset manager, has taken a significant step in expanding its single-asset crypto product lineup by filing registration documents for two new exchange-traded funds (ETFs) tied to Polkadot (DOT) and Cardano (ADA) with the U.S. Securities and Exchange Commission (SEC) [1]. These ETFs, structured as passive investment vehicles, will hold the underlying crypto assets in custody with Coinbase, without the use of leverage or derivatives. The Polkadot Trust will list on Nasdaq under the ticker DOT and track the CoinDesk DOT CCIndex Reference Rate, while the Cardano Trust will trade on NYSE Arca under the ticker GADA and follow the CoinDesk Cardano Price Index [1].

These latest filings represent a continuation of earlier regulatory steps taken in February 2025, when Nasdaq and NYSE Arca submitted 19b-4 forms to facilitate the listing of these ETFs. Grayscale had already laid the groundwork for these products, positioning them for regulatory review and market introduction [1]. According to James Seyffart, an ETF analyst at Bloomberg, the efforts are not new but part of an ongoing process already underway [1].

The move by Grayscale comes amid a broader wave of altcoin ETF applications and growing interest in cryptocurrency as an asset class. The firm's existing product lineup, which includes major crypto assets like Bitcoin and Ethereum, is now being expanded to include additional altcoins with strong community and technological support. The proposed DOT and ADA ETFs will provide institutional and retail investors with a regulated, transparent means to gain exposure to these digital assets.

The filing process for these ETFs aligns with broader regulatory developments in the U.S. market. While the SEC has yet to approve spot crypto ETFs, the increasing number of applications and investor demand suggests that such approvals may be on the horizon. This regulatory environment is encouraging more traditional financial players to consider crypto-related investment products as part of their portfolios.

The structure of the Grayscale Polkadot and Cardano Trusts reflects the firm’s approach to managing digital assets—offering custody through Coinbase, a leading crypto exchange, and using price indices developed by CoinDesk to track the performance of the underlying assets. This model is intended to reduce counterparty risk and provide a straightforward investment vehicle for market participants seeking exposure to specific crypto projects [1].

As the crypto market continues to evolve, the development of ETFs tied to altcoins like DOT and ADA marks an important milestone in the mainstream adoption of digital assets. These products are expected to contribute to greater liquidity, transparency, and institutional participation in the space, provided they receive regulatory approval.

Source:

[1] Grayscale files S-1 Polkadot ETF (https://cryptobriefing.com/grayscale-files-s-1-polkadot-etf/)