Grayscale Files Spot ETF for Polkadot Amid Altcoin ETF Race

The race to file for altcoin ETFs continues to heat up as Grayscale Investments files a new application for a Polkadot spot ETF. Polkadot (DOT) is a decentralized blockchain platform designed to facilitate data transfer between different blockchains, enhancing interoperability and scalability for the blockchain ecosystem.

On Tuesday, Nasdaq Stock Market LLC, on behalf of Grayscale, filed a 19b-4 proposal with the U.S. Securities and Exchange Commission (SEC) to list and trade shares of the **Grayscale Polkadot Trust**. The fund will consist solely of DOT tokens – the native cryptocurrency of the Polkadot network, which currently has a market capitalization of approximately $6.6 billion.

The 19b-4 filing marks the second stage in the SEC’s application process for a spot cryptocurrency ETF. If accepted by the SEC, the filing will be published in the Federal Register, formally beginning the agency’s approval process.

Grayscale first announced the launch of a Polkadot trust in 2021, along with a slew of other crypto trusts. The company is now ramping up its efforts to bring its crypto products to mainstream exchanges through the listing of a spot ETF.

Notably, this comes a day after Canary Capital filed a 19b-4 for a HBAR spot ETF. This is a sign that altcoin ETF issuers continue to increase their presence in the market, with **21Shares** being the first to file for a Polkadot spot ETF in January. Additionally, **Tuttle Capital** has also filed for 10 leveraged crypto ETFs, including a Polkadot tracker.

Meanwhile, the Trump administration has previously facilitated the development of ETF filings beyond bitcoin and ether, helping to fuel the influx of new crypto products. However, some analysts warn that the proliferation of speculative crypto ETFs could have a negative impact on the industry.

The SEC recently approved the XRP ETF and Litecoin spot ETF filings. According to Bloomberg, the Litecoin ETF has the highest chance of approval (90%), followed by Dogecoin (75%), Solana (70%), and XRP (65%).

“There will be more altcoin ETF filings approved by the SEC in the near term, including XRP and Litecoin ETFs,” said Bloomberg Intelligence analyst James Seyffart.

With DOT currently trading at around $4.34, Polkadot continues to be one of the top cryptocurrencies by market capitalization and the center of attention in the race to develop spot cryptocurrency ETF products.