Grayscale Pursues Polkadot ETF Amid Growing Institutional Interest

NEW YORK, Feb. 25, 2025 — Grayscale Investments is intensifying its efforts in the cryptocurrency exchange-traded fund (ETF) market by filing with the U.S. Securities and Exchange Commission (SEC) to develop a Polkadot ETF. This move expands Grayscale’s portfolio of crypto funds as it navigates a shifting regulatory landscape.

The SEC review includes a 45-day period during which regulators will assess the proposal to list and trade shares of the Grayscale Polkadot Trust (DOT) on the Nasdaq exchange. Grayscale’s recent activity follows its applications to convert its XRP Trust into an ETF and the establishment of a spot Cardano ETF.

This initiative signals a potentially favorable shift within the SEC under the current administration, which has recently eased its approach to cryptocurrency regulation by discontinuing several investigations involving major players like OpenSea.

Grayscale is not alone in its pursuit of Polkadot. In January 2025, 21Shares, a competitor in the crypto ETF space, also filed for a spot Polkadot ETF, highlighting a surge in institutional interest surrounding the token.

Recent market performance, however, shows that Polkadot has faced challenges, with a notable 13.2% price drop over the past five days amid a wider downturn across the cryptocurrency market. Despite this, an approval for the ETF could revitalize investor confidence and foster broader adoption of Polkadot.

The potential shift towards a more crypto-friendly regulatory environment could further ease the path for companies like Grayscale to enter the market, given the rising demand for diversified crypto investment options.

Currently, many investors are watching Grayscale closely as it navigates the complex regulatory and market dynamics associated with launching new crypto-related investment products.