The U.S. Securities and Exchange Commission (SEC) has decided to delay its review of Grayscale's application for a Polkadot-based ETF, setting a new deadline for late 2025. This decision underscores ongoing regulatory caution regarding altcoin ETFs.
SEC Stance and Market Reactions
Grayscale's application for a Polkadot ETF remains in limbo as the SEC has extended the review timeframe to late 2025. This aligns with prior delays in the review of altcoin ETFs, indicating a cautious regulatory approach. Consequently, the crypto market has not shown significant immediate volatility, although concerns persist regarding regulatory delays, resulting in subdued institutional interest in Polkadot.
Market Data and Analytical Insights
As of now, Polkadot's market cap is $6.22 billion, with a price of $3.85. The 24-hour trading volume has increased by 38.69%, reaching $261.77 million. However, the price has decreased by 4.45% over the past 90 days. Bloomberg analyst James Seyffart suggests that the earliest possible approval for the DOT ETF could occur in Q4 of 2025.
Future of Institutional Investments in Polkadot
Analysts highlight that regulatory uncertainty continues to suppress institutional engagement. According to Coincu Research, this ongoing opacity may affect the speed of approval, potentially stabilizing the altcoin market.
The SEC's decision to delay the Polkadot ETF reflects a broader regulatory landscape regarding cryptocurrencies and may significantly impact institutional investors' interest in the asset.
