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21Shares has filed for a Polkadot exchange-traded fund (ETF) with the US Securities Exchange Commission (SEC), much to the dismay of the crypto industry.
The proposed 21Shares Polkadot Trust would be listed on the Cboe BZX Exchange, tracking Polkadot’s price in US dollars with Coinbase expected to act as the custodian.
Crypto Twitter was quick to react, sharing their unfiltered criticism. "Polkadot ETF? Really? How about a real investment?" questioned one X user.
"No one needs Dot," said another, whilst one critic predicted, "First ETF to go negative price [sic]."
First ETF to go negative price
— Hitesh 🪬 (@Cashbinoo) February 1, 2025
Bloomberg Intelligence analyst James Seyffart said the filing has triggered the "most hate" he has "ever seen an ETF filing get."
This is up there with the most hate i've ever seen an ETF filing get on this website. People really don't like Polkadot 😂
— James Seyffart (@JSeyff) January 31, 2025
The filing isn't the first time 21Shares has offered a Polkadot-linked product. In 2021, 21Shares launched a Polkadot ETP in Switzerland. However, the fund has struggled to gain traction, recording just 240,000 shares in 90-day trading volume.
Guys guys guys. Also. There is already a 21shares polkadot ETF in Europe. It launched in 21. pic.twitter.com/nhkmvS07F4
— James Seyffart (@JSeyff) January 31, 2025
Polkadot, which once sat in the top ten cryptocurrencies with a market cap of $51 billion, has struggled to retain its status. Currently ranking at 22nd on CoinMarketCap, Polkadot now has a market cap of $6.6 billion.
21Shares' filing comes amid a slew of crypto ETF filings from asset managers with the SEC. Last week, an application to convert Grayscale's XRP Trust into an ETF was submitted by NYSE Acra to the SEC.
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Meanwhile, the SEC approved a filing from NYSE Arca to list and trade shares of a new ETF from Bitwise, which combines Bitcoin and Ethereum.
According to an SEC filing, the approval was granted on an "accelerated basis," as the proposal aligns with Section 6(b)(5) of the Exchange Act. The act requires exchanges to implement measures to prevent fraud and manipulation while protecting investors and serving the public interest.
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The push for crypto-based ETFs has gained significant momentum following Donald Trump's re-election. Just days after his inauguration, Trump signed an order in the Oval Office that aims to advance cryptocurrency in the US while exploring the development of a digital asset stockpile.
“The digital asset industry plays a crucial role in innovation and economic development in the United States, as well as our Nation’s international leadership,” the executive order reads.
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