The race to launch a Polkadot ($DOT) ETF on the exchange is heating up, with Grayscale Investments officially entering the fray by filing with the SEC.
Grayscale Files for Polkadot ETF
Grayscale, one of the largest crypto asset managers known for its Bitcoin and Ethereum ETFs, is expanding its ETF lineup to include Polkadot. The filing via Nasdaq includes a Form 19b-4 with the SEC, kicking off a 45-day review period wherein the regulator can approve, reject, or extend the application.
Why Polkadot ETF Matters to Investors
Approval of a Polkadot ETF would allow investors to trade DOT on traditional financial markets without directly purchasing the tokens, simplifying access for institutional investors and traders while reducing risks related to crypto exchanges and custody.
SEC Approval Chances for Polkadot ETF
The SEC's regulatory landscape is shifting, with the current administration appearing more open to the crypto industry. However, the SEC has not yet classified Polkadot as a commodity or security. This could delay or block approval. The outcome of Grayscale's applications for XRP, Solana, and Cardano ETFs could set the tone for Polkadot's chances.
The market watches closely as the SEC's decisions could affect future altcoin ETF approvals. Success of other altcoin applications might set the stage for Polkadot.
