Polkadot News Today: Grayscale Pushes Altcoin ETFs as Regulators Weigh Crypto's Future

Grayscale, one of the largest providers of cryptocurrency-based investment products, has filed registration statements with the U.S. Securities and Exchange Commission (SEC) for exchange-traded funds (ETFs) tied to Polkadot (DOT) and Cardano (ADA). These filings mark the latest expansion of the firm's suite of single-asset crypto trusts, as the market continues to see a surge in alternative cryptocurrency ETF applications.

Under the proposed structure, the Grayscale Polkadot Trust ETF will trade on Nasdaq under the ticker symbol DOT. The fund is designed to track the CoinDesk DOT CCIBer Reference Rate, a benchmark reflecting the price of the DOT token. Meanwhile, the Grayscale Cardano Trust ETF will list on NYSE Arca under the ticker GADA, tracking the CoinDesk Cardano Price Index. Both funds will operate as passive investment vehicles, with the underlying assets held in custody through Coinbase, and will not employ leverage or derivatives in their strategies [1].

The S-1 filings for these ETFs follow earlier 19b-4 submissions made in February 2025, when Nasdaq and NYSE Arca applied to list the Polkadot and Cardano trusts, respectively. This indicates that Grayscale had already laid the groundwork for these products, positioning them for regulatory scrutiny and eventual approval. The 19b-4 filings are a critical step in the process of bringing new ETFs to market, signaling intent to offer and distribute the product [1].

According to James Seyffart, an ETF analyst at Bloomberg, the DOT and ADA filings are not entirely new initiatives but rather the next logical steps in ongoing efforts to bring these assets to U.S. investors. Seyffart noted that the regulatory landscape for crypto ETFs is evolving, and the continued filings suggest that market participants are increasingly confident in the feasibility of approval [1].

The filing of these two ETFs adds to the growing list of altcoin investment vehicles being considered by asset managers. While Bitcoin and Ethereum continue to dominate the crypto ETF space, there is a clear trend toward diversification, with investors and fund providers showing interest in a broader range of blockchain ecosystems. Polkadot and Cardano, both known for their smart contract capabilities and scalable infrastructure, represent alternative value propositions in the crypto market [1].

The timing of the filings also coincides with heightened regulatory activity around crypto investment products. The SEC has been scrutinizing several ETF proposals, and its responses to past filings have influenced the design and structure of newer products. Grayscale's approach, which includes direct token custody and index-based pricing, reflects a strategy aimed at addressing regulatory concerns around market integrity and investor protection [1].

As the SEC reviews the applications, market observers will be closely watching for any indication of regulatory direction on altcoin ETFs. While there is no official timeline for a decision, the filings represent a significant step forward in the broader normalization of crypto assets within traditional investment frameworks [1].

Source:

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