21Shares, a firm focused on exchange-traded funds, has submitted a filing for a new spot Polkadot ETF. This filing is aimed at gaining approval from the U.S. Securities and Exchange Commission (SEC).
Objectives and Features of 21Shares ETF
The proposed fund, named the 21Shares Polkadot Trust, will be the first of its kind. It is set to trade on the Cboe BZX Exchange and will track the performance of DOT, the native token of the Polkadot Network. The custody of DOT will be managed by Coinbase Custody Company.
Other Movements in the Crypto ETF Market
Earlier this week, Tuttle Capital also filed for ten leveraged crypto ETFs, which include one that tracks Polkadot. Many firms are seeking to introduce new crypto products in the U.S. due to a potential shift in regulatory attitudes.
Changes in SEC Regulations
Previously, former SEC Chair Gary Gensler was reluctant to approve spot bitcoin ETFs. However, a court ruling led to the approval of these ETFs. Following this, the SEC also approved spot Ethereum ETFs. On January 30, the SEC approved a filing from NYSE Arca, allowing a new ETF to be listed and traded. This fund will invest based on the market capitalization of Bitcoin and Ethereum, holding only these two cryptocurrencies along with some cash reserves.
The SEC's approval of new ETFs reflects a shift in the regulator's approach to cryptocurrency products amid changing market and regulatory conditions.
