21Shares Bets On Polkadot, Files For Spot ETF With SEC

Christian Encila

Last Updated: February 1, 2025 8:00 am

2 mins read

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21Shares is taking a radical step in the crypto investment sector by submitting a spot Polkadot (DOT) exchange-traded fund (ETF) application to the US Securities and Exchange Commission (SEC).

If given the green light, this ETF would enable investors to acquire direct exposure to Polkadot without the need to purchase and maintain the cryptocurrency themselves.

The 21Shares Polkadot Trust, a proposed fund, is intended to be listed on the CBOE BZX Exchange. Coinbase will be the custodian for DOT tokens.

A Step Towards Increasing The Number Of Crypto Investment Options

This ETF aims to make it easier for both large buyers and everyday people to buy Polkadot. The blockchain is known for its interoperability, allowing different networks to communicate and share data.

21Shares ETF filing with the SEC. Source: US SEC.

21Shares is trying to bridge the gap between traditional finance and the crypto world by offering an exchange-traded fund (ETF). This will make DOT a more attractive choice for investors who like controlled investments instead of owning cryptocurrencies directly.

This follows rising demand for diversified crypto-based ETFs. Although Bitcoin and Ethereum spot ETFs have garnered attention, Polkadot’s participation shows popular interest in alternative currencies. However, the success of this filing depends on how the SEC views Polkadot’s regulatory standing, a factor that could impact the outcome of the approval process.

DOT market cap currently at $9.9 billion. Chart: TradingView.com

Market Performance Presents Obstacles

Polkadot has encountered market obstacles, despite the enthusiasm that fueled the filing. The price of DOT has decreased by approximately 5% in the past year, and it has declined by more than 10% in the past month alone. DOT is currently trading at approximately $6.42, a significant decline from its previous all-time highs.

The ETF filing acknowledges that the asset can be unstable and warns buyers about possible risks. Polkadot’s value could still be uncertain, even with an ETF setup, and there’s no guarantee that the token will rise or bounce back soon.

Regulatory Risks Might Affect The Chances Of Approval

Regarding the security status of this ETF, there are significant concerns about Polkadot’s potential legal standing in the US. Polkadot’s backer, the Web3 Foundation, has attempted to portray DOT as a digital asset rather than a security concern. The SEC’s stance on digital assets is evolving, thus Polkadot’s security status may make it challenging for 21Shares to develop an ETF.

Featured image from DALL-E, chart from TradingView

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

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