Grayscale Files for Polkadot ETF, Trading Volume Soars Above 145%

Digital asset management firm Grayscale is on track to list an exchange-traded fund (ETF) tracking Polkadot’s native coin, DOT.

Through the Nasdaq stock exchange, Grayscale has submitted a Form 19b-4 requesting the approval of a Polkadot ETF with the United States Securities and Exchange Commission (SEC). Following the announcement, Polkadot’s DOT experienced a significant surge in trading activity, with trading volumes increasing by over 145% to $437.13 million.

Launched in 2020 by Gavin Wood, Polkadot is a layer-0 blockchain network that provides a security infrastructure upon which other blockchains can build. As a result, it calls itself a “blockchain network of networks.” It employs the proof-of-stake consensus mechanism and boasts itself as a decentralized blockchain network.

Grayscale Files for Polkadot ETF

Grayscale’s first encounter with Polkadot trails back to 2021, when the firm included the digital asset among around 30 other cryptocurrencies to rank among its investment trusts. Since then, the asset manager has offered a Polkadot Trust to users.

In its latest Form 19b-4, Grayscale proposed that the Polkadot ETF list and trade the shares under Nasdaq’s rules for commodity-based trust shares, making it a regulated investment option. This means that investors could soon trade DOT like stocks without having to buy or store the cryptocurrency themselves. Each share will represent a portion of the Grayscale Polkadot Trust (DOT) holdings. The Trust’s main activities include issuing shares in exchange for DOT as the shares value changes based on DOT’s market prices.

If the Polkadot ETF application is approved, the financial product will provide investors with direct exposure to DOT’s price within the traditional financial market.

Notably, Grayscale’s submission of Form 19b-4 is only the second step towards full approval. The SEC has 45 days to approve or reject Grayscale’s application, and it could also decide to extend the review period.

While DOT’s 24-hour traded volume has pumped massively, the digital asset’s price has failed to impress. At the time of writing, it sold for $4.43, a 5.74% drop within the past 24 hours. The price underperformance comes amid a broader crypto market decline as leading cryptocurrencies BTC and ETH lose value.

Not the First

Grayscale is the first applicant for a spot Polkadot ETF. 21Shares had applied for the investment vehicle with the SEC in late January. The firm chose Coinbase Custody Company, LLC as the crypto custodian for the financial product.

The post Grayscale Files for Polkadot ETF, Trading Volume Soars Above 145% appeared first on Cointab.