On May 15, 2025, the U.S. Securities and Exchange Commission (SEC) officially extended its review period for the 21Shares spot Polkadot ETF to June 24, 2025. This decision is part of a series of delays in evaluating crypto ETFs.
SEC Decision and Polkadot ETF
The SEC's decision to postpone the review period for the Polkadot ETF indicates a cautious approach to digital asset products. The proposed ETF would track the performance of Polkadot (DOT), a well-known Layer 0 network designed for interoperability among different blockchains.
Market Reaction to Delay
Following the announcement of the delay, the price of DOT experienced a slight dip from just over $5 to around $4.80. However, daily trading volumes remained solid at approximately $263 million, indicating ongoing investor interest. Analysts attribute this price movement more to short-term disappointment rather than any fundamental issues with the Polkadot network.
General Crypto ETF Delays
Polkadot is not alone in facing delays. The SEC has also deferred decisions on ETFs tied to Solana, XRP, Dogecoin, and HBAR. These delays reflect the Commission's broader efforts to thoroughly assess market structure, custody protocols, and investor protection related to digital asset funds. Currently, over 70 crypto ETF applications are under review from major firms such as Grayscale and BlackRock.
The situation surrounding the delays in decisions for the Polkadot ETF and other digital assets continues to evolve. The next few months will be crucial in determining how spot crypto ETFs are evaluated and approved.
