The U.S. Securities and Exchange Commission (SEC) has postponed its decision on whether to approve an exchange-traded fund (ETF) that would hold Polkadot’s native token, DOT. The delay was documented in an April 24 regulatory filing, with the deadline for a final ruling now extended to June 11. This decision follows Grayscale’s application to list its Grayscale Polkadot Trust on the Nasdaq exchange back in February.
Grayscale’s Polkadot ETF is part of an extensive lineup of proposed crypto funds waiting for SEC approval. These include ETFs involving a range of digital assets, from mainstream cryptocurrencies like XRP, Litecoin, and Solana to various altcoins and memecoins. Asset manager 21Shares is also seeking regulatory permission to list its own Polkadot ETF.
Polkadot, a layer-1 blockchain network launched in 2020, currently has a market capitalization of approximately $6.6 billion, according to data from CoinMarketCap as of April 24.
Sec delays crypto ETF decisions
Grayscale is one of several asset managers vying to introduce altcoin ETFs in the US.
The company has already launched multiple crypto funds, including those for Bitcoin and Ether. In addition to its Polkadot ETF, Grayscale has proposed ETFs for other tokens such as Solana, Litecoin, Dogecoin, and Cardano. Despite the influx of altcoin ETF applications, analysts warn that investor demand may not match that of Bitcoin and Ether ETFs.
Eric Balchunas, a Bloomberg analyst, likened having a cryptocurrency included in an ETF to being added to major music streaming platforms—it increases exposure but doesn’t guarantee substantial investor interest. A March report by Coinbase and EY-Parthenon indicated that over 80% of institutional investors intend to maintain or increase their cryptocurrency holdings. However, the broader appeal for altcoin ETFs remains uncertain.
As the SEC continues to evaluate these applications, the crypto industry awaits the regulator’s decisions, which could significantly impact the future landscape of cryptocurrency investments in the US.
