- Grayscale expands ETF lineup with a Polkadot trust, targeting rising altcoin demand.
- Grayscale’s Polkadot ETF filing reflects growing interest in altcoin-based investments.
- SEC review period begins for Grayscale’s Polkadot ETF, joining a surge of crypto filings.
Nasdaq filed a request with the U.S. Securities and Exchange Commission (SEC) to allow trading of Grayscale Polkadot Trust shares that contain Polkadot’s DOT tokens. The application through Form 19b-4 triggers a 45-day review period for the SEC to determine approval, rejection, or extended proposal assessment. The regulatory authority maintains control over the start of trading by issuing necessary approval.
Crypto asset manager Grayscale Investments intends to add more exchange-traded funds (ETFs) to its product series through this initiative. The company currently provides Bitcoin spot ETFs and Ether spot ETFs through public exchanges. Grayscale Investment expands its publicly accessible crypto fund collection by focusing on the inclusion of Polkadot token DOT, which currently trades at $4.61. The filing demonstrates the ongoing market momentum for asset management firms that develop ETFs based on altcoins.
Grayscale Broadens Altcoin ETF Efforts
Grayscale continues to pursue ETFs for various cryptocurrencies beyond Bitcoin and Ether. The company recently filed to convert its XRP Trust into an ETF and requested approval for a spot Cardano ETF. Additionally, it seeks to launch funds tied to Solana, Litecoin, Dogecoin, and a diversified crypto basket. These efforts reflect Grayscale’s strategy to meet rising investor demand for altcoin exposure.
The asset manager also operates several single-asset crypto funds not listed on public exchanges. For instance, it launched a Pyth Network fund in February and a Dogecoin fund in January. In December, the asset manager introduced funds for Lido and Optimism tokens. The Polkadot Trust filing marks its latest step toward offering a broader range of tradable crypto products.
SEC Faces Wave of Crypto ETF Applications
Multiple asset managers, including 21Shares, have submitted proposals for Polkadot ETFs, joining Grayscale in seeking SEC approval. Other firms have filed for ETFs linked to altcoins like Hedera and Official Trump tokens. Meanwhile, issuers await decisions on enhancements to existing ETFs, such as staking and options trading features. These developments signal a surge in crypto ETF applications.
The direction of the SEC regarding cryptocurrencies has changed since President Trump started his second presidential term. While Biden was president, the SEC pursued more than 100 legal cases against crypto firms for violating securities rules. In 2024, it approved Bitcoin and Ether ETFs but blocked altcoin-based funds. Analysts from Bloomberg Intelligence now estimate approval odds at 65% for XRP, 70% for Solana, and 90% for Litecoin ETFs.
