- 21Shares seeks to launch a Polkadot ETF in the US, with Coinbase as custodian.
- Analysts say ‘the market will decide’ if altcoin ETFs like Polkadot will survive.
21Shares filed for a Polkadot exchange-traded fund in the US, joining a wave of altcoin ETF applications as issuers test investor appetite for crypto-based funds.
The 21Shares Polkadot Trust would trade on the Cboe BZX Exchange and follow a benchmark that tracks Polkadot’s price in US dollars. Coinbase would serve as its custodian.
Bloomberg Intelligence analyst James Seyffart noted the filing has been met with skepticism.
“This is up there with the most hate I’ve ever seen an ETF filing get,” he said.
However, he added, “The market will decide where value lies. If no one puts money into a Polkadot ETF it will close.”
21Shares already operates a Polkadot ETP in Switzerland, launched in 2021.
Despite its presence in the market, the fund has struggled recently, recording just 240,000 shares in 90-day trading volume, according to Bloomberg data.
Once a top-10 cryptocurrency with a $51 billion market cap in 2021, Polkadot now ranks #19, trading at $6.35 with a market cap of just under $10 billion.
The Polkadot ETF joins a growing list of altcoin ETF applications, including those for Litecoin, XRP, Solana, and Dogecoin, filed shortly after SEC Chair Gary Gensler stepped down.
Analysts speculate that a Trump administration could bring a more crypto-friendly regulatory climate, fueling these new filings.
Kyle Baird is DL News’ Weekend Editor. Got a tip? Email at kbaird@dlnews.com.
