21Shares Seeks to Launch First Polkadot ETF in the US; Details
Swiss asset manager 21Shares is looking to disrupt the US market by filing with the US Securities and Exchange Commission (SEC) to list a private equity exchange-traded fund (ETF). Polkadot (DOT) on the Cboe BZX exchange. 21Shares sent its proposal of a Polkadot ETF to the SEC this Friday, January 31st.
If approved, this will be the first Polkadot ETF available to investors in the United States. Coinbase, one of the largest cryptocurrency exchanges in the world, will act as the custodian of DOT assets, ensuring the safety of investor funds.
This isn’t the first time 21Shares has attempted to launch a Polkadot investment product. In 2021, the company launched a Polkadot ETP in Switzerland, demonstrating its interest in offering exposure to this innovative cryptocurrency. However, launching an ETF in the U.S. presents significant regulatory challenges that the company must overcome.
Despite the DOT price drop in 2024, 21Shares is moving forward with its ETF launch plan. The company acknowledges in its filing that there are no guarantees of long-term price stability for Polkadot, but believes in the cryptocurrency’s potential and investor demand for diversified investment products.
The 21Shares proposal also highlights some risks involved in launching a Polkadot ETF in the US. One of the main risks is potential regulatory scrutiny. Another highlighted risk is investor demand. Bloomberg analyst James Seyffart emphasized in comments on X that the success of this product will depend on investor interest. “The market will decide where the value is and whether there is value in launching such a product. If no one puts money into a Polkadot ETF, it will close. People are free to launch any ETFs that are deemed permissible by the SEC,” wrote .
Despite the challenges, 21Shares is confident that its Polkadot ETF will be successful. The company believes that the U.S. market is ready for a Polkadot investment product and that its ETF will offer investors a safe and convenient way to gain exposure to this promising cryptocurrency.
At the time of publication, Polkadot price is quoted at $6,35 with a decline of 0.2% in the last 24 hours.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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