The post 21Shares Files to Launch Spot Polkadot ETF in the U.S. appeared first on Coinpedia Fintech News
Amid the surge in new crypto ETF filings in the U.S., asset management firm 21Shares has applied to launch a spot Polkadot ETF. The Asset management firm 21Shares has filed with the US SEC to launch a spot Polkadot exchange-traded fund (ETF).
21Shares revealed plans to list the 21Shares Polkadot Trust on the Cboe BZX exchange, with Coinbase serving as the DOT custodian in a January 31 SEC filing. This comes four years after 21Shares launched a similar product in Switzerland. In February 2021, the asset manager introduced the world’s first Polkadot ETP on the Swiss SIX exchange.
Uncertainty in Price Performance Post-ETF Launch
Notably, the filing cautioned that there’s no guarantee of Polkadot’s price performance, either short-term or long-term, after the ETF launches. “There is no assurance that DOT will retain its value in the long or intermediate term,” it stated.
The filing outlined potential risks associated with the Polkadot Network. These included a potential increase in the DOT supply available for trading, and the possibility of DOT being classified as a security “under federal laws.”
Bloomberg analyst James Seyffart noted in an X post that the market will decide where value lies and if there’s value in launching such a product. “If no one puts money into a Polkadot ETF, it will close. People are free to launch whatever ETFs are deemed to be allowed by the SEC,” he noted.
A Wave Of ETF Applications
Ever since Gary Gensler’s departed from SEC earlier this month, the SEC has seen a surge in altcoin ETF applications. Grayscale submitted ETF applications for DOGE, XRP, Litecoin, and Solana. The firm recently launched a Bitcoin Miners ETF.
Besides, asset managers Osprey Funds and REX Shares filed to launch ETFs for memecoins like Dogecoin, Official Trump (TRUMP), and Bonk, the day after Gensler’s resignation. Also, recently, the SEC granted initial approval for Bitwise Asset Management’s Bitwise Bitcoin and Ethereum ETF, which aims to track the prices of Bitcoin and Ethereum in one fund.
