21Shares, a major asset management firm, has officially filed with the U.S. Securities and Exchange Commission (SEC) to launch a spot Polkadot exchange-traded fund (ETF), aiming to bring the crypto asset into mainstream investment portfolios.

According to the Jan. 31 SEC filing, the 21Shares Polkadot Trust is set to be listed on the Cboe BZX exchange, with Coinbase serving as the custodian for DOT. This marks another milestone for 21Shares, which previously launched the world's first Polkadot ETP on Switzerland’s SIX exchange in February 2021.

Despite the ETF filing, Polkadot’s market performance has been lackluster. Currently ranked as the 18th largest cryptocurrency, DOT’s price has dropped 5.16% in the past year and 10.48% in the last month, based on CoinMarketCap data. The filing itself warns that there are no guarantees on the token’s price stability or future growth.

Bloomberg ETF analyst James Seyffart commented that the fate of the Polkadot ETF ultimately lies in market demand. If investors do not back the product, it could face closure. "People are free to launch whatever ETFs the SEC allows, but the market will determine if there's real value," Seyffart posted on X.

Regulatory concerns also loom over Polkadot. The filing highlighted risks such as a potential increase in DOT’s circulating supply and the possibility of the SEC classifying DOT as a security under federal law. However, the Web3 Foundation, which oversees Polkadot’s development, has repeatedly argued that DOT is not a security, emphasizing that its distribution strategy avoids centralization.

The ETF filing arrives in the wake of SEC Chair Gary Gensler’s resignation on Jan. 20, a move that has triggered a surge in crypto-related ETF applications. Just a day after his departure, Osprey Funds and REX Shares filed to launch ETFs for memecoins, including Dogecoin and Trump-themed tokens. Meanwhile, the SEC recently gave initial approval to Bitwise’s Bitcoin and Ethereum ETF.

As the SEC reviews 21Shares’ application, investors will be watching closely to see if Polkadot can carve out a niche in the competitive crypto ETF space.