Crypto News Today: Will the Grayscale Polkadot ETF Get SEC Nod?

Grayscale and 21Shares Battle for Polkadot ETF Approval

Grayscale Wants to Launch a Polkadot ETF: Here’s What You Need to Know

Grayscale Investments, a big company that manages crypto funds, is trying to bring a new exchange-traded fund (ETF) for Polkadot (DOT). This means investors might soon be able to buy DOT in a safer and easier way. Nasdaq has asked the U.S. Securities and Exchange Commission (SEC) to allow trading of the Grayscale Polkadot Trust. But will the SEC say yes?

Institutional Investors Eye Polkadot: Grayscale Takes the Lead

Grayscale, a major crypto asset manager, is taking steps to launch a Polkadot ETF, showing growing interest from big investors in Polkadot (DOT). Nasdaq has asked the SEC to approve the listing of the Grayscale Polkadot Trust. This move is part of Grayscale’s push into altcoin ETFs, following its recent filings for XRP and Cardano ETFs.

Why the Grayscale Polkadot ETF Could Be a Game Changer

The Grayscale Polkadot ETF news comes in a time when the SEC has suddenly started taking a more crypto-friendly approach. Once approved, it shall enable investors to access exposure to Polkadot crypto without holding tokens directly.

Nasdaq’s filing initiates a 45-day review period during which the SEC can approve, deny, or extend a decision on the ETF application. The procedure would serve significant precedent for future derivatives of cryptocurrency-linked ETFs.

Grayscale is also working on expanding its cryptocurrency ETFs. It already has spot Bitcoin and ETH ETFs and has filed for Solana, Dogecoin, Litecoin, and XRP ETFs. A diversified crypto basket ETF involving other digital assets is also on the drawing board.

21Shares Also Files for a Spot Polkadot ETF

Interestingly, Grayscale is not the only player in this space. Asset manager 21Shares has also submitted a Polkadot ETF filing. On January 31, 21Shares filed an S-1 form with the SEC to list its 21Shares Polkadot Trust on the Cboe BZX exchange. Coinbase is set to act as the DOT custodian.

This move follows 21Shares’ successful launch of a Polkadot ETP in Switzerland in 2021. The competition between asset managers indicates growing institutional interest in Polkadot crypto investments.

Impact on Polkadot Price

Following the Grayscale Polkadot ETF news, Polkadot’s price surged. DOT saw an 8.24% increase in 24 hours, trading at $4.70. The market cap also rose by 8.26%, reaching $7.29 billion, while trading volume jumped by 37.03% to $410.45 million.

Polkadot Price Prediction

Some analysts expect major growth for Polkadot with the possible upcoming approval of an ETF. The Polkadot price prediction in 2025 suggests a trading range between $15 and $20, while 2030 estimates price the DOT between $40 and $50. Its future value, however, mainly depends on wider usage, institutional interest, and regulatory clarity.

What’s Next for Polkadot and Crypto ETFs?

As Grayscale and 21Shares compete for a Polkadot ETF approval, the market's response will determine its long-term success. While initial price movements indicate optimism, sustained institutional interest and favorable SEC decisions will ultimately shape the future of Polkadot ETFs and their impact on the crypto market.

For now, crypto news today highlights this as a major development in the crypto market news landscape. Investors are closely watching what happened in the crypto market today as the ETF race heats up.