21Shares files with SEC for spot Polkadot ETF
21Shares has submitted a filing to the US Securities and Exchange Commission (SEC) to launch a spot Polkadot exchange-traded fund (ETF) intended for trading on the Cboe BZX exchange, with Coinbase serving as the DOT custodian. Notably, this filing comes four years after the company introduced a similar product in Switzerland. Though Polkadot ranks as the 18th largest cryptocurrency by market capitalization, its price has struggled, seeing a decline of 5.16% over the past year and 10.48% in the last month. The filing underscores the uncertainty of Polkadot's price stability, warning that if the price of DOT falls, the value of the ETF shares will similarly decline. Bloomberg ETF analyst James Seyffart emphasized that market demand will ultimately guide the success or failure of the Polkadot ETF. Moreover, the document outlined several risks related to the Polkadot Network, including potential increases in DOT supply and the categorization of DOT as a security under federal law. The filing coincides with broader movements in the crypto ETF space following Gary Gensler's resignation as SEC chair, triggering a flurry of ETF applications.
Source 🔗