21Shares Files with US SEC for Spot Polkadot ETF 

Highlights:

• 21Shares files S‑1 with SEC to launch spot Polkadot ETF on Cboe.
• Bloomberg analyst warns low investor interest might force closure of Polkadot ETF.
• Crypto ETF filings surge this week as altcoins attract growing regulatory and market attention.

On Jan. 31, asset management firm 21Shares filed an S-1 registration statement with the US Securities and Exchange Commission (SEC) to launch a spot Polkadot (DOT) exchange-traded fund (ETF). 21Shares stated that it plans to list the Polkadot ETF on the Cboe BZX Exchange, which will track the performance of DOT, the native token of the Polkadot Network. Coinbase Custody Company, LLC will handle the custody of the DOT.

The filing highlighted possible risks linked to the Polkadot Network. These risks include the potential rise in the available DOT supply for trading and the chance that DOT could be classified as a security under federal laws.

Bloomberg Analyst James Seyffart said the market will determine where the value lies and whether launching such a product is worthwhile. He noted that if no one invests in a Polkadot ETF, it would likely close. Seyffart also mentioned that people have the freedom to launch any ETFs approved by the SEC.

Guys guys guys. Also. There is already a 21shares polkadot ETF in Europe. It launched in 21. pic.twitter.com/nhkmvS07F4

— James Seyffart (@JSeyff) January 31, 2025

The asset manager stressed that the fund will follow a passive investment approach, steering clear of leverage, derivatives, and active trading strategies. This filing comes after Tuttle Capital Management’s proposal earlier this week for a 2x leveraged Polkadot ETF, which was part of a broader submission for 10 leveraged crypto ETFs.

However, ETF analyst Eric Balchunas later confirmed on X that Tuttle Capital had withdrawn its filing for all of its 2x leveraged ETFs. He pointed out that withdrawals usually happen when regulators express concerns to issuers. Balchunas said Trump and Dogecoin ETF filings from Rex remain intact, offering early clues about where the SEC might be drawing its boundaries.

Man, the jockeying is intense. I’ve never heard of a trust launching and then looking to convert to ETF the same day. But hey they may now be in pole position in 19b-4 race. Also we now up to four Doge etf filings (including 2x). Genz has only been gone for like two wks lol. https://t.co/eHFZvqmIXt

— Eric Balchunas (@EricBalchunas) January 31, 2025

Polkadot’s DOT Sees 4% Jump After ETF Filing, Market Cap Hits $9.9B

Polkadot’s native token, DOT, rose 4.47% after the ETF filing, reaching $6.43 at the time of writing. Its market capitalization is currently $9.93 billion. The token is still trading 88% below its November 2021 peak of $55, when its market cap hit $55 billion.

ETF Filings Heat Up This Week

21Shares’ filing isn’t the first to make headlines this week. Earlier, the Cboe exchange refiled its Solana 19b-4 application alongside those from VanEck, Canary Capital, and Bitwise. Meanwhile, Grayscale launched a Dogecoin Trust, offering investors exposure to DOGE with a 2.5% management fee due to growing demand. Soon after its launch, Grayscale transitioned the trust filing into an ETF application.

In addition to its Polkadot ETF filing, 21Shares has a pending XRP ETF application with the SEC. Approval of the XRP ETF seems probable, though the SEC may delay other altcoin ETFs under its current interim leadership. Mark Uyeda is currently heading the SEC temporarily, while Paul Atkins, nominated by President Trump, awaits congressional approval to become the permanent chair.

If the SEC approves another altcoin fund, Litecoin could be the first. The commission has already recognized Canary Capital’s Litecoin ETF application. Additionally, Litecoin’s classification as a non-security due to being a Bitcoin fork works in its favor.