21Shares seeks SEC approval for Spot Polkadot ETF launch

21Shares has filed an application with the US Securities and Exchange Commission (SEC) to launch a spot Polkadot (CRYPTO:DOT) exchange-traded fund (ETF).

The filing, submitted on January 31, outlines plans to list the 21Shares Polkadot Trust on the Cboe BZX exchange, with Coinbase serving as the custodian for Polkadot tokens.

This move follows 21Shares' earlier introduction of a similar product in Switzerland in February 2021, where it launched a Polkadot exchange-traded product (ETP) on the Swiss SIX exchange.

Polkadot has experienced a decline in its market performance.

Over the past year, its price has dropped by 5.16%, and it has fallen by 10.48% in the last month.

The SEC filing cautioned that there is no guarantee of Polkadot's price stability.

"There is no assurance that DOT will maintain its value in the long or intermediate term," they stated.

Bloomberg ETF analyst James Seyffart noted that the success of the ETF will depend on market demand.

"The market will decide where value lies and if there's value in launching such a product. If no one puts money into a Polkadot ETF — it will close," he explained.

The filing also addressed potential risks associated with Polkadot, including an increase in token supply and concerns over whether DOT could be classified as a security under federal law.

The Web3 Foundation, which supports Polkadot's development, has previously argued against classifying DOT as a security.

At the time of reporting, the Polkadot (DOT) price was $4.25.