Swiss asset supervisor 21Shares is making a transfer to deliver a Polkadot ETF to the U.S., submitting an utility with the SEC to listing it on the Cboe BZX trade.
If accredited, Coinbase will act because the custodian for the DOT holdings.
This isn’t 21Shares’ first try at a Polkadot funding product. Again in 2021, the agency launched a Polkadot ETP in Switzerland, however launching within the U.S. presents new regulatory challenges. Regardless of DOT’s declining value over the previous yr, the agency is pushing ahead, although its submitting acknowledges there are not any ensures for long-term value stability.
The proposal additionally highlights dangers, together with potential regulatory scrutiny. Whereas the Web3 Basis insists DOT shouldn’t be a safety, the likelihood stays that it may very well be categorised as one underneath U.S. regulation. Bloomberg analyst James Seyffart famous that the ETF’s success will rely upon investor demand—if curiosity is low, the fund gained’t survive.
21Shares’ submitting coincides with a wave of recent crypto ETF proposals following SEC Chair Gary Gensler’s latest resignation. With different asset managers in search of approval for Bitcoin, Ethereum, and even memecoin ETFs, the altering regulatory panorama might decide whether or not Polkadot joins the listing of tradable crypto property in U.S. markets.
