Grayscale Seeks Approval for Polkadot ETF in Latest Fund Expansion

Overview

Grayscale Investments, a prominent asset-management firm for cryptocurrencies, is taking steps to include an exchange-traded fund (ETF) focused on Polkadot’s DOT token in its product lineup. The Nasdaq exchange has officially submitted a request to the U.S. Securities and Exchange Commission (SEC) for authorization to list shares of the Grayscale Polkadot Trust (DOT). This marks the beginning of a 45-day review period for the SEC, during which they will assess the filing and may either approve or deny it, or choose to extend the review period.

Recent Developments

Grayscale has previously sought approval for ETFs based on XRP and Cardano, indicating a strategic push to diversify its offerings amidst a changing regulatory environment.
As of now, Polkadot’s DOT token is trading at approximately $4.4, reflecting a recent drop of 6.7% in the last 24 hours.

These efforts come as the SEC has begun adopting a more welcoming stance towards cryptocurrency investments under the current administration, having reduced its scrutiny on various crypto projects.

Market Context

This initiative positions Grayscale alongside other crypto asset managers, such as 21Shares, who have also moved to list an ETF based on Polkadot. With Polkadot continuing to gain traction in the cryptocurrency market, Grayscale’s new proposal indicates the growing interest in the digital asset space.

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