Grayscale Now Seeks SEC Approval for Polkadot ETF

Grayscale has submitted a proposal to the U.S. Securities and Exchange Commission for a Polkadot exchange-traded fund. The application, filed through Nasdaq, seeks approval to list and trade shares of the Grayscale Polkadot Trust. The proposed ETF will function as a Commodity-Based Trust, with shares representing a proportional interest in the trust’s assets. Grayscale’s Proposal and Key Players According to the filing , Grayscale Operating and Grayscale Investments Sponsors, both subsidiaries of Digital Currency Group, will oversee the trust’s operations. The custodian for the trust is Coinbase Custody Trust Company, while CSC Delaware Trust Company will act as trustee.  Notably, the trust, formed in January 2021, will not actively manage assets but will hold DOT and track its value through the index price. The market price of its shares is expected to fluctuate with DOT’s market movements. Over time, the amount of DOT represented by each share will decrease as assets cover the trust’s expenses. Function and Market Impact The trust’s activities will include issuing shares in exchange for DOT deposits and selling DOT to cover operational costs. It may also redeem shares for DOT, pending regulatory approval. The trust will not attempt to maximize profits or minimize losses but will provide investors with direct exposure to Polkadot. Unlike direct crypto purchases, the ETF aims to simplify acquiring and holding DOT while minimizing associated security risks. Notably, Polkadot’s price stands at $4.43 during this press, reflecting a 6.17% decline over 24 hours and a 7.81% decrease over the past week. The trust’s performance will closely follow DOT’s market price, making it essential for investors to monitor Polkadot’s fluctuations. Grayscale Expansion to Other Crypto ETFs Grayscale is also pursuing ETFs for multiple digital assets. In a recent development, the SEC acknowledged a rule change application for a Grayscale Cardano ETF, increasing its chances of approval. The New York Stock Exchange (NYSE) Arca filed for a Grayscale Cardano Trust conversion on February 10, with the SEC recognizing the application on February 13. Additionally, Grayscale is advancing its XRP ETF application. Last week, the SEC officially started reviewing the 19b-4 filing for the proposed ETF, placing the decision deadline at October 18, 2025. If approved, the fund will convert the Grayscale XRP Trust into a spot-based ETF, allowing direct investment exposure to XRP. Besides Polkadot, Cardano, and XRP, Grayscale aims to introduce ETFs for Solana (SOL), Dogecoin (DOGE), and Litecoin (LTC).