- Nasdaq has filed for a Polkadot ETF to let investors gain exposure to DOT without holding the token.
- The SEC has 240 days to approve or reject the Polkadot ETF proposal by 21Shares.
- 21Shares plans to expand its crypto investment products with a Polkadot ETF in the U.S. market.
Nasdaq has submitted a filing with the U.S. Securities and Exchange Commission (SEC) to introduce a spot Polkadot ETF. The submission under Form 19b-4 aims to provide investors with exposure to DOT without direct ownership. The proposed ETF will track Polkadot’s spot price, offering a regulated investment product.
SEC Review Process and Approval Timeline
The Polkadot ETF application has entered the approval phase while the SEC holds power to grant or deny the proposal during a 240-day examination period. The S-1 form amendment by 21Shares represents a milestone towards implementing crypto-based investment products across the United States. The approval of this ETF will likely increase institutional interest in DOT.
21Shares’ Role and Expansion Plans
21Shares released a matching ETF product in Europe previously before entering the U.S. market. Investors can trade the 21Shares Polkadot ETP under ADOT ticker symbol and its available DOT tokens exist as physical assets.
The success of the 21Shares Polkadot ETP in Europe prompted the company to launch its U.S. version. The ETF management duties will be handled by 21Shares US LLC and DOT token custody will be provided by Coinbase to maintain security standards.
ETF Structure and Investment Mechanism
The ETF will track DOT’s spot price without using leverage or speculation. When shares are redeemed, DOT tokens are sold, and the cash proceeds are used to settle transactions.
This structure ensures the ETF reflects DOT’s price while minimizing risk. Authorized financial firms will create or redeem shares by purchasing DOT through third-party sources, maintaining market balance.
Institutional Interest and Market Expansion
21Shares’ filing aligns with similar efforts by other crypto asset managers. Grayscale Investments has also applied to launch a spot Polkadot ETF. This trend shows increasing institutional interest in crypto investment products.
The company is also planning ETFs for XRP and Solana. Additionally, it has introduced a staking option for the 21Shares Core Ethereum ETF. This allows passive returns from staking ETH owned by the trust.
