Grayscale Polkadot ETF Delayed, SEC Pushes Decision to June 11

The U.S. Securities and Exchange Commission (SEC) has delayed its decision to approve the Grayscale Polkadot ETF.

The U.S. Securities and Exchange Commission (SEC) has pushed back its decision to approve or deny the Grayscale Polkadot ETF, according to a notice published on Monday.

The agency announced a 45-day extension to its initial review period, which now gives the SEC until June 11 to decide on the application.

“The Commission finds it appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised therein,” SEC wrote in the filing.

The decision will give the SEC more time to consider a proposed rule change by Nasdaq that would permit the exchange to list and trade the Grayscale Polkadot Trust shares. The application was filed on February 24 and entered into the public record on March 13.

Assistant Secretary Sherry R. Haywood signed the extension. The SEC, meanwhile, requires more time to analyze the concerns that it has with the proposal. It is standard practice to take the full time provided by law to review applications for which there is an opportunity for public comment and to have numerous conversations with the listing exchange and the applicant’s representatives before making a decision, the commission said.

Earlier this year, the SEC also delayed its decision on several other Grayscale applications for Bitcoin and Ethereum ETFs. These applications are currently being reviewed by the agency.

Grayscale pushes forward with new crypto ETF plans

Grayscale, one of the world’s largest managers of crypto assets, is trying to expand its line of exchange-traded funds. The new proposal concerns Polkadot (DOT), a major blockchain project that facilitates the transfer of data and tokens between blockchains.

If the Polkadot ETF is approved, it would enable everyday investors to invest in DOT via traditional stock exchanges — without the need to purchase the crypto or manage it themselves.

Grayscale already operates ETFs that are tied to Bitcoin and Ethereum. The company has also filed applications to introduce similar products for cryptocurrencies such as Solana, Cardano, Litecoin, Dogecoin, and XRP. The approval would represent a step toward mainstream digital asset investment vehicle adoption.

The ETF would be listed on the Nasdaq under the rules for commodity-based trust shares, which include funds that follow the price of such underlying assets as gold or oil and, more recently, cryptocurrencies.

DOT price holds strong as analysts remain bullish

Despite the delay on the part of the SEC, Polkadot has been described as bullish, according to the price analysis of the coin. DOT has increased by over 2% in the past 24 hours and has surged by 15% in the past week. Numerous analysts are optimistic about the outlook for additional gains in the coming months.

As for the price analysis, crypto analyst Patel notes that DOT is “responding exactly as one would expect,” suggesting the token could test $10 in the medium term. If momentum continues, he said, it could head to $20. Some long-term forecasts are even more optimistic, predicting that the price could ultimately rise to $42.

DOT has a few reasons for that strong performance. A big part of the equation is that almost 50% of all DOT tokens are tied up in staking, thus diminishing supply for trade and amplifying demand.

Harbour has also launched a $100M ecosystem fund to invest in projects built on Polkadot, and some big names, such as HashKey Capital, have already invested in early development. That network is expanding itself with creative products like multi-yield DeFi products through GIGADOT and a game platform from Mythical that now boasts more than seven million consumers.