TL;DR
- Grayscale has filed for approval of a Polkadot-based ETF, joining the trend of new proposals for crypto funds.
- The crypto market saw significant drops, with Bitcoin falling 8.2% and Polkadot 6%, though it slightly recovered from daily lows.
- The SEC is reviewing multiple ETF applications, with HBAR and Litecoin among the ones most likely to be approved.
Grayscale has filed for approval of a Polkadot (DOT) exchange-traded fund (ETF), joining the growing list of asset managers seeking to launch cryptocurrency-backed financial products.
The submission to the U.S. Securities and Exchange Commission (SEC) aligns with a similar filing made by 21Shares earlier this month, highlighting the market’s interest in structuring ETFs around this blockchain ecosystem.
Grayscale Seeks Approval for Several ETFs
The proposed new ETF is part of Grayscale’s expansion strategy, as the company has filed for other digital assets in recent months, including Litecoin, XRP, Cardano, Dogecoin, and Solana. The inclusion of Polkadot in this list follows the clear trend of diversification in financial products linked to the crypto market, as more companies aim to offer regulated investment options for various tokens.
Severe Shakeup in the Crypto Market
Although the news provides significant support for Polkadot, it had no impact on the DOT price. It’s worth noting that in the past hours, Bitcoin (BTC) has fallen 8.2%, dropping below $87,000 and dragging the entire market down, with its capitalization falling 6.75% during the last day. Meanwhile, Polkadot (DOT) dropped 6%, reaching around $4.39. However, its value managed to partially recover from earlier lows of $4.18.
The ETF approval process is moving forward, with the SEC currently evaluating multiple submissions. Grayscale’s filing of the 19b-4 form marks a formal step in the evaluation of its proposal, a process that has also been followed recently by Canary Capital with its Hedera (HBAR)-based ETF. According to analysts, the HBAR and Litecoin proposals have the highest chances of approval.
The growing number of ETF applications based on altcoins indicates a growing interest in expanding the range of financial products tied to the crypto industry. The SEC’s response to these proposals could define the future of institutional investment in the sector and the evolution of the crypto market
