The ETF trend reflects growing Nasdaq interest in crypto investment products, with Grayscale also pursuing ETFs for XRP and Cardano.
After Nasdaq submitted a request to the U.S. Securities and Exchange Commission (SEC) to list and trade shares of the Grayscale Polkadot ETF, Polkadot’s (DOT) price has rebounded in defiance of the recent crypto market crash.
This action is consistent with the filings of other altcoins, such as Cardano and XRP. Analysts are currently speculating about the potential price movement of DOT, with some predicting a rise to $34 in the event that the Polkadot ETF is approved.
Nasdaq Seeks SEC Approval for Grayscale Polkadot ETF
Nasdaq has submitted Form 19b-4 to the SEC in accordance with a recent filing in order to list and trade shares of the Grayscale Polkadot Trust (DOT).
This filing represents the most recent development in the expansion of cryptocurrency-based investment products on conventional exchanges. The regulatory sentiment toward cryptocurrencies is evolving, and Grayscale has been expanding its ETF offerings.
Nasdaq Seeks SEC Approval for Grayscale Polkadot ETF
In addition to the Polkadot ETF, the company has recently submitted an application to convert its XRP Trust into an ETF and has filed for a spot Cardano ETF, which has been approved.
Additional potential products associated with digital assets, including Litecoin (LTC), Dogecoin (DOGE), and Solana (SOL), are also under consideration. Under the leadership of acting US SEC chair Mark Uyeda, the US SEC has adopted a more open posture toward digital assets during the Trump administration.
These filings are indicative of this stance. Several crypto-related investigations, such as those against Robinhood, Coinbase, and the NFT marketplace OpenSea, were recently discontinued by the regulator.
As a result, market analysts believe that this change could increase the likelihood of obtaining approval for multiple spot crypto ETFs. The Polkadot ETF filing is indicative of a more extensive trend of institutional investors’ growing interest in cryptocurrency investment products.
Tuttle Capital Management recently proposed a leveraged 2x Polkadot ETF; however, it subsequently retracted its filings for all leveraged crypto ETFs. James Seyffart, an ETF analyst at Bloomberg, expressed his opinion on the increasing number of crypto ETF applications, asserting:
“Altcoin ETFs are coming.” More filings for XRP and Litecoin ETFs are expected in the coming days.
The ETF is produced by Grayscale Investments, which is committed to providing investors with regulated exposure to Polkadot’s native token. The US SEC currently has a 45-day review period to acknowledge the filing, following which it has the option to approve, deny, or extend the review process.
Grayscale’s filing is in response to a comparable request from 21Shares, which submitted an application for a Polkadot ETF spot late last month. The Polkadot ETF filing resulted in a fleeting 4% increase in the price of DOT, which then declined by 6% over the course of the last 24 hours, settling at $4.4.
Market analysts anticipate that DOT’s price could experience a substantial increase in the event that critical resistance levels are breached, despite the recent decline.
According to Polkadot’s price prediction, the initial significant resistance level is $6, which must be overcome in order to establish a robust upward trend. If DOT surpasses this threshold, it may develop momentum and advance toward the subsequent significant resistance level at $11.
This level has been tested twice and rejected, rendering it a critical threshold for future price action. A successful breach above $11 would suggest a robust bullish trend, potentially paving the way to $34 with minimal resistance.
The analyst suggests that the Polkadot price may persist in its pursuit of a robust bottom prior to a potential rebound in the event of a gradual and consistent decline.
Nevertheless, a V-shaped recovery could occur in the event of an abrupt and rapid decline, resulting in an equally robust bounce for the DOT price.
