Formally, Nasdaq has asked the U.S. Securities and Exchange Commission (SEC) to list and trade Grayscale Polkadot Trust shares as an exchange-traded fund (ETF). Approved, this ETF would provide investors access to Polkadot (DOT) in a controlled environment, therefore increasing their access to the altcoin market.
The submission follows a rising trend of asset managers looking for SEC clearance for ETFs connected to cryptocurrencies outside of Bitcoin and Ethereum. As demand for digital assets continues to grow, Grayscale wants to add additional altcoins to its line of financial products.
Leading cryptocurrency management Grayscale has lately registered for ETFs linked to Solana, Litecoin, XRP, Dogecoin, and Cardano and already provides ETFs for Bitcoin and Ethereum. The company is also working on clearance for a diversified crypto ETF comprising several digital assets housed in one fund.
Before any trading can start, the SEC’s approval process calls for looking over Nasdaq’s file. Although the regulatory body has always been wary of authorizing ETFs linked to alternative cryptocurrencies, current changes in the regulatory scene point to increasing openness to such investment products.
Other asset managers outside Grayscale, like 21Shares, have also put proposals for Polkadot-based ETFs forward. The growing institutional interest in the field reflects the desire for controlled crypto investment vehicles.
The blockchain platform running DOT, Polkadot, wants to improve interoperability among other blockchain systems. Blockchain engineers and investors both find it appealing since it uses a special relay chain method to enable flawless communication between distributed networks.
Should approval be granted, the Grayscale Polkadot ETF could significantly increase the market presence of DOT by giving investors a practical approach to exposure to the cryptocurrencies without personally owning the asset. This ETF could represent yet another turning point in popular crypto investment accessibility as institutional usage of it is growing.
The future of the Polkadot ETF is still unknown as regulatory investigation keeps under examination. But with several companies fighting for permission, the drive toward crypto ETFs outside of Bitcoin and Ethereum is more intense than it has ever been.
