21Shares Files for a Polkadot (DOT) ETF with the SEC

21Shares has filed an application with the SEC seeking permission to list its spot Polkadot ETF. If approved, this move will help track the price action of the DOT token

21Shares has filed an application with the SEC seeking permission to list its spot Polkadot ETF. If approved, this move will help track the price action of the DOT token, a nod to Polkadot’s position as one of the top cryptocurrencies by market cap.

This new filing follows an application submitted by 21Shares earlier this month. It intends to provide investors with access and exposure to the DOT token.

The proposal suggests 21Shares’ intention to list and trade shares of its Polkadot trust under the Nasdaq Rule 900. Series D, applying to the exchange for permission to list and trade shares of the 21Shares Core Polkadot.

The applicant is 21Shares, while the trust will be managed by a subsidiary, 21Shares Investment Management S.A. The trust will hold and invest in DOT, and the shares of the trust will be sold to the public.

The shares will be listed and traded on Nasdaq in accordance with the applicable rules and regulations of the exchange.

21Shares is also planning to secure regulatory approval for an XRP and Solana ETF. The exchange also applied to the SEC to allow its 21Shares Core Ethereum ETF to stake, giving investors a chance to make more profit.

According to the proposal, the staking would be limited to the exchange’s ETH holdings to prevent delegated staking.

Other ETF Filings

Apart from 21Shares, Grayscale Investments has also applied to the SEC to launch a spot Polkadot ETF and seeks approval to list and trade shares of its Polkadot Trust.

The application, filed with the SEC on Thursday, follows earlier submissions by Grayscale for Cardano and XRP ETFs, showcasing its aim to expand its crypto ETF offerings.

Furthermore, Tuttle Capital Management proposed a leveraged 2x Polkadot ETF as part of an earlier filing for 10 2x leveraged crypto ETFs with the SEC.

The filing, which was later withdrawn alongside all the 2x leveraged ETF proposals, explained that using leverage amplified returns and increased losses.

Investors could potentially lose their “entire principal” investment in a single trading day if the 2x leveraged Polkadot ETF fell to zero, the filing noted.

The bid was later withdrawn alongside all the 2x leveraged ETF proposals.

As the broader cryptocurrency market has seen a downturn, Polkadot is down 13% in the last month. However, the DOT token has seen an 8% jump in the last week, with a significant rise following the ETF filing news.

The rise in institutional interest in Polkadot has led to optimism among analysts, who anticipate an incoming rally as more corporations file for a Polkadot ETF.

With the Polkadot price currently around $9.3, experts predict an "optimistic scenario" could push the token to $20, while a "pessimistic scenario" could see it fall to $3.