Nasdaq has officially submitted a 19b-4 application to the U.S. Securities and Exchange Commission (SEC) seeking approval to list shares of the Grayscale Polkadot ETF, according to a report by Wu Blockchain.
Grayscale’s Strategic Escalation
This filing marks a strategic escalation in Grayscale’s multi-year effort to bring institutional-grade Polka (DOT) exposure to the traditional markets, building on its Grayscale Polkadot Trust established in 2021.
After the news of this development broke out, the price of the DOT token has seen a minor uptick. The token has experienced a surge of 0.5% in the past hour as per CoinGecko.
Background and Context
The investment firm has a plan that’s worked before: turning its investment trusts into ETFs. They are trying to do this again with an XRP ETF, and now they are doing it with Polkadot.
The Proposed ETF
The new ETF will get its value from an existing investment fund (Grayscale Polkadot Trust) that has been around since 2021. This fund holds Polkadot (DOT) and other cryptocurrencies like Solana and Cardano.
By turning this fund into an ETF, the investment firm wants to reduce price swings and make it easier for regular investors (not just wealthy ones) to buy and sell through familiar online brokerages.
SEC Scrutiny and Regulatory Classification
SEC Scrutiny will likely focus on Polkadot’s regulatory classification, given the agency’s ongoing litigation against Ripple (XRP) and previous designations of SOL and ADA as securities enforcement actions.
Timing and Market Demand
Analyst think that the timing of the filing is strategic, as institutions are looking for ways to diversify their crypto investment beyond Bitcoin and Ethereum. The investment firm’s XRP ETF application, which is currently under review, could set a stage for how the SEC handles similar products based on alternative cryptocurrencies, or “altcoins”.
The SEC has 240 days to decide on the application, with a deadline of October 2025.
Market Prospects and Analyst Views
Experts are divided on whether Polkadot’s ETF will succeed. On one hand, Polkadot’s large market value and advanced blockchain technology are positives. On the other hand, its price has not kept up with its rivals like Solana.
Some analysts think that the investment firm is preparing for a surge in ETFs based on alternative cryptocurrencies, using its existing infrastructure to tap into emerging trends.
If approved, Grayscale’s Polkadot ETF would be the first to track Polkadot’s current price, potentially bringing new investment into its ecosystem.
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