Amid the surge in new crypto ETF filings in the U.S., asset management firm 21Shares has applied to launch a spot Polkadot ETF. The Asset management firm 21Shares has filed with the US SEC to launch a spot Polkadot exchange-traded fund (ETF).
21Shares revealed plans to list the 21Shares Polkadot Trust on the Cboe BZX exchange, with Coinbase serving as the DOT custodian in a January 31 SEC filing. This comes four years after 21Shares launched a similar product in Switzerland. In February 2021, the asset manager introduced the world’s first Polkadot ETP on the Swiss SIX exchange.
Notably, the filing cautioned that there’s no guarantee of Polkadot’s price performance, either short-term or long-term, after the ETF launches. “There is no assurance that DOT will retain its value in the long or intermediate term,” it stated.
The filing outlined potential risks associated with the Polkadot Network. These included a potential increase in the DOT supply available for trading, and the possibility of DOT being classified as a security “under federal laws.”
Bloomberg analyst James Seyffart noted in an X post that the market will decide where value lies and if there’s value in launching such a product. “If no one puts money into a Polkadot ETF, it will close. People are free to launch whatever ETFs are deemed to be allowed by the SEC,” he noted.
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