- 21Shares has filed an S-1 registration for its Polkadot ETF with the SEC, marking its second ETF-related move this week.
- 21Shares plans to list its Polkadot ETF on the Cboe BZX Exchange as a passive investment that simply tracks DOT’s price without seeking extra returns.
On January 31, 21Shares, one of the world’s leading crypto exchange-traded product (ETP) investing platforms, officially filed its S-1 registration statement with the U.S. Securities and Exchange Commission (SEC) for a Polkadot ETF.
Unlike some other crypto ETFs, the 21Shares Polkadot ETF will not use derivatives or leverage. According to the S-1 filing, the fund will strictly follow DOT’s price and avoid buying or selling at market peaks or troughs. If approved, the ETF will be listed on the Cboe BZX Exchange and will track the CME CF Polkadot-Dollar Reference Rate price of DOT.
21Shares has chosen Coinbase Custody Trust Company, LLC, as the custodian for its Polkadot ETF, pending regulatory approval. This move ensures secure asset management for the fund, which aims to provide investors with direct exposure to DOT without the complexities of self-custody. Despite the ETF’s structured approach, 21Shares has warned investors that DOT’s price performance is not guaranteed, either in the short or long term.
This Polkadot ETF filing marks the second time 21Shares has been involved in ETF developments. On January 28, the Cboe exchange refiled its Solana 19b-4 application, alongside similar filings from VanEck, Bitwise, and Canary Capital. This development follows Cboe BZX Exchange’s submission of a 19b-4 application to the SEC, proposing the listing of Bitcoin and Ethereum ETFs.
Polkadot sets itself apart from other Proof-of-Stake networks through its unique innovations: the Relay Chain and Parachains. The Relay Chain coordinates and secures the entire network, while Parachains are independent blockchains that connect to the Relay Chain, enhancing interoperability and scalability. This architecture enables seamless communication between different blockchains, making Polkadot a strong contender for crypto investment, appealing to those seeking versatile blockchain solutions.
Regulatory Shake-Up: Crypto ETFs on the Rise
The filing comes amid a shifting regulatory landscape following the resignation of SEC Chair Gary Gensler on January 20 and the inauguration of pro-crypto President Donald Trump. Even though during Gary’s tenure, we saw the approval of both Bitcoin and Ethereum ETFs, he had previously blocked multiple crypto ETFs, but his departure triggered a wave of new filings from asset managers. Mark Uyeda is now serving as the acting SEC Chair, while Caroline Pham has taken over as CFTC Chair.
Compared to other crypto assets like Ripple (XRP), Polkadot may face fewer regulatory hurdles with the SEC. Since its blockchain is designed for interoperability and decentralization rather than financial speculation, its ETF approval process could be smoother. Meanwhile, other assets like Dogecoin (DOGE), TRUMP, and BONK are also seeing ETF filings, reflecting the growing demand for crypto-based investment products. As of press time, DOT is trading at about $6.34 after rising 4.43% in the past 24 hours, therefore boosting its market cap to over $9 billion.
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