21Shares Seeks SEC Approval for Spot Polkadot ETF Launch

• 21Shares files with SEC to list Polkadot ETF on Cboe BZX, with Coinbase as custodian.
• Polkadot ranks 18th in the crypto market, with DOT trading at $6.42 amid ETF filing news.
• Crypto ETF filings surge post-Gensler resignation, with multiple altcoins joining the trend.

Asset management firm 21Shares has reportedly filed with the U.S. Securities and Exchange Commission (SEC) to launch a Polkadot spot exchange-traded fund (ETF). This new filing, dated January 31, 2025, seeks for the 21Shares Polkadot Trust to list on the Cboe BZX exchange. 

The fund will use Coinbase Custody to store the assets and track the performance of Polkadot’s native cryptocurrency, DOT. This is a significant milestone for 21Shares, which launched a similar product in Switzerland in 2021.

Polkadot ETF’s Role in the Growing Crypto Market

21Shares has noted that the market must decide whether a Polkadot ETF is viable. The company has acknowledged, though, that the price of DOT could fluctuate wildly. The value of DOT will not be stable regardless of whether it is short-term or long-term. The filing also suggests risks around its network, such as supplying more and DOT being classified as a security according to federal laws.

However, these risks aside, 21Shares argues that the launch of the ETF is a response to a strong demand for more altcoin ETFs. In recent months, many major asset management companies have sought similar filings for other cryptocurrencies, a widespread trend in the crypto investment space. This comes after a wave of new ETF applications after Gary Gensler resigned from the SEC in January 2025.

What the Filing Means for Polkadot’s Future

As of the time of the filing, Polkadot (DOT) traded at $6.42 at press time, with a year-to-date decrease of over 4.54%. Polkadot’s current market cap is around $9.82 billion, making it the 18th largest market for cryptocurrencies. The price trend has been downwards from its high, largely based on market sentiment and economic outputs.

As analysts have pointed out, the success of the ETF depends on investor interest. The ETF could be withdrawn if the market doesn’t support sufficient demand for the product. This uncertainty is typical of most new cryptocurrency-based ETFs. 

In recent weeks, firms like Grayscale and Coinshares have filed multiple altcoin ETF applications, including Solana and Dogecoin. These filings show that the SEC is paying increasing attention to this sphere.

Related: CoinShares, Grayscale File for XRP, Litecoin, Solana ETFs

In a filing 21Shares has noted there is room for more competition in the altcoin ETF space. But others in the altcoin ETF business, including Grayscale, have made some moves. For instance, Grayscale has asked for a Dogecoin ETF, as well as others tied to Solana, XRP, and Litecoin. However, the success of the Polkadot ETF is not sure, since Polkadot’s price volatility and associated regulatory challenges could significantly inhibit performance.

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