The US Securities and Exchange Commission (SEC) has delayed a call on whether or not to approve a proposed exchange-traded fund (ETF) holding Polkadot’s native token, regulatory filings present.
According to an April 24 submitting, the regulator has prolonged its deadline for a last ruling till June 11, practically 4 months after the Nasdaq sought permission to record Grayscale Polkadot Trust on Feb. 24.
Grayscale’s ETF submitting provides to a roster of roughly 70 proposed ETFs awaiting SEC approval, together with funds holding altcoins, memecoins, and crypto-related monetary derivatives, based on Bloomberg Intelligence.
Asset managers are pitching ETFs for “[e]verything from XRP, Litecoin and Solana to Penguins, Doge and 2x Melania and everything in between,” Bloomberg analyst Eric Balchunas said in an April 21 submit on the X platform. Asset supervisor 21Shares can be awaiting permission to record its personal Polkadot ETF.
Polkadot is a layer-1 blockchain community launched in 2020. Its native token, DOT (DOT), has a market capitalization of roughly $6.6 billion as of April 24, according to CoinMarketCap.
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Altcoin ETF pipeline
Grayscale is amongst a number of asset managers looking for regulatory clearance to record altcoin ETFs within the US. The firm is already behind a number of crypto funds, together with spot Bitcoin (BTC) and Ether (ETH) ETFs.
The asset supervisor has additionally requested for permission to launch ETFs holding tokens corresponding to Solana (SOL), Litecoin (LTC), XRP (XRP), Dogecoin (DOGE), and Cardano (ADA).
The pipeline of proposed fund listings comes as greater than 80% of institutional traders say they plan to boost allocations to crypto in 2025, based on a March report by Coinbase and EY-Parthenon.
However, analysts warning that demand for altcoin ETFs is prone to be far more restricted than for funds holding core cryptocurrencies corresponding to Bitcoin and Ether.
“Having your coin get ETF-ized is like being in a band and getting your songs added to all the music streaming services,” Balchunas stated.
“Doesn’t guarantee listens but it puts your music where the vast majority of the listeners are.”
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