21Shares Files for Spot Polkadot ETF: Will Defeat XRP & LTC ETF?

21Shares Files for Spot Polkadot ETF: Community & $DOT Price Reaction

In a significant move, 21Shares has filed S-1 form for a Polkadot ETF in the US, seeking to list the 21Shares Polkadot Trust on the Cboe BZX exchange. According to a January 31 SEC filing, Coinbase will act as the DOT custodian. 

Source: X

This development follows the launch of a similar product by 21Shares in Switzerland in 2021, where the firm introduced the world’s first Polkadot ETP on the Swiss SIX exchange.

The launch of a Spot Polkadot ETF could pave the way for institutional investment in DOT, but market acceptance remains uncertain. If the demand for such a product is insufficient, it may eventually be discontinued. The Polkadot ETF approval will depend on regulatory compliance and market participation.

Community Reaction and Polkadot Price Movement

Following the Polkadot ETF news, DOT price saw an immediate 5.21% spike, reaching $6.36, with a market cap of $9.82 billion and a 24-hour trading volume of $329.83 million. This rally followed a dip to $5.585 earlier in the week. 

Source: CoinMarketCap

Despite the price surge, the community reaction was largely negative, with many users expressing disappointment on social media platforms, particularly Twitter.

Some community members compared the Spot Polkadot ETF unfavorably to the XRP ETF, Litecoin ETF, and Dogecoin ETF, arguing that these alternatives hold greater value. However, the 21Shares ETF news could still play a role in shaping investor sentiment toward DOT ETF products.

Comparing Polkadot ETF with XRP, Litecoin, and Dogecoin ETFs

Meanwhile, other cryptocurrency-based ETFs are making headlines. Bloomberg analyst James Seyffart predicts that an XRP ETF could be approved by 2025. However, the SEC lawsuit regarding XRP's classification as a security remains an obstacle.

On the other hand, a Litecoin ETF may emerge first, as LTC has not been identified as a security. Additionally, Grayscale and NYSE have filed to convert Grayscale's XRP Trust into an ETF, with the trust currently holding $16 million in assets. Meanwhile, Grayscale is also launching a Dogecoin Trust, though this will not be an ETF and will carry a 2.5% management fee.

Polkadot Price Prediction: 2025 and Beyond

Looking ahead, Polkadot price prediction for 2025 estimates a trading range between $15 and $20. By 2030, forecasts suggest fluctuations between $40 and $50, with potential growth based on broader adoption and regulatory clarity.

As 21Shares files for Polkadot ETF, the market's response will ultimately determine its success. While the initial price jump reflects optimism, the long-term impact on DOT ETF investments will depend on institutional interest and broader cryptocurrency market dynamics.