SEC Delays Decision on Polkadot (DOT) ETF, Extends Deadline to June 11

The US Securities and Exchange Commission (SEC) has delayed a decision on whether to approve a proposed exchange-traded fund (ETF) holding Polkadot's native token

The US Securities and Exchange Commission (SEC) has pushed back its decision on whether to approve a proposed exchange-traded fund (ETF) holding Polkadot's native token, regulatory filings show.

The regulator will now extend its deadline for a final ruling until June 11, nearly four months after the Nasdaq applied for permission to list Grayscale's Polkadot Trust on February 24, according to an April 24 filing.

Grayscale's ETF filing adds to a roster of roughly 70 proposed ETFs awaiting SEC approval, including funds holding altcoins, memecoins and crypto-related financial derivatives, according to Bloomberg Intelligence.

Asset managers are pitching ETFs for "[e]verything from XRP, Litecoin and Solana to Penguins, Doge and 2x Melania and everything in between," Bloomberg analyst Eric Balchunas said in an April 21 post on the X platform. Asset manager 21Shares is also awaiting permission to list its own Polkadot ETF.

Polkadot is a layer-1 blockchain network that launched in 2020. Its native token, DOT, has a market capitalization of approximately $6.6 billion as of April 24, according to CoinMarketCap.

Related: Institutions are breaking up with Ethereum but keeping ETH on the hook

Altcoin ETF pipeline

Grayscale is among multiple asset managers seeking regulatory clearance to list altcoin ETFs in the US.

The company is already behind several crypto funds, including spot Bitcoin (BTC) and Ether (ETH) ETFs.

Grayscale has also asked for permission to launch ETFs holding tokens such as Solana (SOL), Litecoin (LTC), XRP (XRP), Dogecoin (DOGE) and Cardano (ADA).

The pipeline of proposed fund listings comes as more than 80% of institutional investors plan to boost allocations to crypto in 2025, according to March research by Coinbase and EY-Parthenon.

However, analysts warn that demand for altcoin ETFs is likely to be much more limited than for funds holding core cryptocurrencies such as Bitcoin and Ether.

"Having your coin get ETF-ized is like being in a band and getting your songs added to all the music streaming services," Balchunas said.

"Doesn't guarantee listens but it puts your music where the vast majority of the listeners are."

See More: Pointing to a Surging Institutional Interest in Crypto, Coinbase Says Plans to Launch an Ether Futures ETF