- 21Shares filed for a Polkadot ETF with the SEC aiming to list it on the Cboe BZX Exchange and track DOT performance.
- The SEC may approve an XRP ETF while delaying other altcoin ETFs under its interim leadership.
- Litecoin has a strong chance for an ETF approval since it is classified as a non-security due to its Bitcoin origin.
Asset management firm 21Shares submitted their S-1 registration statement to the US Securities and Exchange Commission for approval. The filing establishes procedures to introduce a Polkadot (DOT) exchange-traded fund service.
The Cboe BZX Exchange will provide listing services to this ETF which will monitor DOT token performance from the Polkadot Network. Asset custody will be managed by Coinbase Custody Company, LLC.
The filing outlines potential risks tied to the Polkadot Network. DOT’s circulating supply could rise while federal authorities may classify DOT as a security. The company will implement passive investment strategies to minimize risks from leverage and derivatives along with active trading.
Growing Interest in Altcoin ETFs
The proposal follows recent activity in the crypto ETF space. Earlier this week, Tuttle Capital Management filed for a 2x leveraged Polkadot ETF as part of a broader submission for 10 leveraged crypto ETFs.
However, the firm later withdrew its filing for all leveraged products. The withdrawal suggests that regulators may have raised concerns about these offerings. Other firms, such as Rex, continue to push forward with ETFs tied to cryptocurrencies, including Dogecoin.
Regulatory Challenges Ahead
Interest in altcoin ETFs continues to grow. Alongside the Polkadot ETF, 21Shares has a pending Solana ETF application. The SEC’s decision on this filing remains uncertain. However, an XRP ETF approval appears likely, given previous discussions about altcoin funds. The regulatory body may delay decisions on other altcoin ETFs under its interim leadership.
Meanwhile, Cboe recently refiled its Solana 19b-4 application. Several firms, including VanEck, Canary Capital, and Bitwise, also submitted applications for Solana-related funds.
If the SEC greenlights another altcoin ETF, Litecoin could be next. The commission has already acknowledged Canary Capital’s Litecoin ETF filing. Litecoin’s classification as a non-security, due to its Bitcoin-based origin, strengthens its case for approval.
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