Nasdaq Makes a Move: Grayscale’s Polkadot ETF Awaits SEC Approval

The US Securities Exchange Nasdaq has thrown its hat into the ring, requesting to list a Grayscale Exchange Fund (ETF) that tracks the native token of the Polkadot network, DOT. If given the green light, the Grayscale Polkadot Trust would join the growing list of publicly traded crypto funds managed by the asset manager. This move is just the latest in a long line of applications to the US Securities and Exchange Commission (SEC) from stock exchanges and asset managers eager to list ETFs tied to alternative cryptocurrencies.

Grayscale’s ETF Expansion

Grayscale is no stranger to the ETF game, already listing two spot Bitcoin (BTC) ETFs and a spot Ether (ETH) ETF. The company is also attempting to list ETFs for other popular cryptocurrencies like Solana (SOL), Litecoin (LTC), XRP (XRP), Dogecoin (DOGE), and Cardano (ADA). Additionally, Grayscale is seeking permission to list a diversified ETF that holds a basket of cryptocurrencies, including several altcoins. With dozens of single-asset crypto funds already under its belt, Grayscale is making a serious push to expand its ETF offerings.

A Busy Few Months for Grayscale

In recent months, Grayscale has been on a roll, launching new investment funds for various cryptocurrencies. In February, the company started an investment fund for the native tokens of the Pyth Network. January saw the launch of an investment fund for Dogecoin, the most popular memecoin by market capitalization. And in December, Grayscale introduced two new investment funds for Lido and Optimism’s governance tokens, LDO and OP, respectively. It’s clear that Grayscale is committed to providing investors with a wide range of cryptocurrency investment options.

The SEC’s Changing Stance on Crypto

The SEC has historically been cautious when it comes to cryptocurrency, but that seems to be changing. After US President Donald Trump’s second term began, the SEC appeared to soften its stance on crypto. However, under former President Joe Biden, the federal authority ramped up its enforcement actions against crypto companies, filing over 100 lawsuits and alleging various securities law violations. Despite this, the SEC has approved Bitcoin and Ether ETFs, and proposed ETFs for other cryptocurrencies are awaiting approval.

What’s Next for Crypto ETFs?

According to Bloomberg Intelligence, the likelihood of an XRP ETF being approved in the US is around 65%. The chances of approval for Litecoin and Solana ETFs are even higher, at 90% and 70%, respectively. As the crypto landscape continues to evolve, it will be interesting to see how the SEC navigates the complex world of cryptocurrency regulation. With companies like Grayscale and 21shares pushing the boundaries of what’s possible, it’s likely that we’ll see more innovative crypto investment products in the near future.