Grayscale and 21Shares Compete for Polkadot ETF Approval
Grayscale Investments, a leading crypto asset manager, is working to launch a Polkadot (DOT) exchange-traded fund (ETF). If approved, this ETF would provide investors with a safer and more convenient way to gain exposure to DOT. Nasdaq has officially requested approval from the U.S. Securities and Exchange Commission (SEC) to list the Grayscale Polkadot Trust. But will the SEC approve it?
Institutional Investors Show Interest in Polkadot
Grayscale’s move to introduce0 a Polkadot ETF highlights increasing institutional interest in Polkadot (DOT). This filing follows Grayscale’s recent efforts to launch ETFs for XRP and Cardano, reinforcing its expansion into altcoin ETFs.
Why the Grayscale Polkadot ETF Matters
The potential approval of the Grayscale Polkadot ETF comes amid a more crypto-friendly stance from the SEC. If given the green light, investors will be able to gain exposure to Polkadot without directly holding the token.
Nasdaq’s filing starts a 45-day review period during which the SEC can approve, reject, or extend the decision. The outcome could set a precedent for future cryptocurrency-linked ETFs.
Grayscale is also expanding its range of crypto ETFs, currently offering Bitcoin and Ethereum spot ETFs. It has filed applications for ETFs tied to Solana, Dogecoin, Litecoin, and XRP, with plans for a diversified crypto basket ETF.
21Shares Joins the Race for a Polkadot ETF
Grayscale is not the only contender. Asset manager 21Shares has also filed for a Polkadot ETF. On January 31, it submitted an S-1 form to the SEC to list the 21Shares Polkadot Trust on the Cboe BZX exchange. Coinbase will act as the custodian for DOT.
This follows 21Shares’ successful launch of a Polkadot ETP in Switzerland in 2021, indicating increasing institutional interest in Polkadot investment opportunities.
Polkadot Price Reaction to ETF News
Following the ETF announcement, Polkadot’s price surged 8.24% in 24 hours, reaching $4.70. Market capitalization climbed by 8.26% to $7.29 billion, while trading volume spiked 37.03% to $410.45 million.
Polkadot Price Prediction
Analysts predict significant growth for Polkadot if an ETF is approved. Forecasts for 2025 estimate DOT trading between $15 and $20, while projections for 2030 place it between $40 and $50. However, long-term value will depend on institutional adoption, broader usage, and regulatory clarity.
What’s Next for Polkadot and Crypto ETFs?
As Grayscale and 21Shares compete for ETF approval, market response will be key. While initial price movements signal optimism, sustained institutional investment and favorable SEC rulings will ultimately shape the future of Polkadot ETFs and their impact on the crypto market.
For now, investors are closely monitoring developments, making this a pivotal moment in the crypto ETF space.
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