Grayscale Investments has submitted S-1 registration statements to the U.S. Securities and Exchange Commission (SEC) for spot exchange-traded funds (ETFs) tracking Polkadot (DOT) and Cardano (ADA). This move represents a significant expansion of regulated crypto investment products beyond Bitcoin and Ethereum, potentially opening new avenues for institutional and retail investors.
The proposed ETFs will be passively managed and will directly hold DOT and ADA tokens, with Coinbase Custody serving as the asset custodian. The Cardano ETF is slated for listing on NYSE Arca, while the Polkadot ETF is proposed for Nasdaq. This initiative follows Grayscale's earlier 19b-4 submissions for these products, indicating a continued push for regulatory approval.
Michael Sonnenshein, CEO of Grayscale Investments, stated: "Grayscale's submission of S-1s for both Cardano and Polkadot ETFs illustrates our commitment to expanding access to regulated digital asset investment products." ETF analyst James Seyffart from Bloomberg noted that these aren't brand new filings but represent the next step in the regulatory process.
The filings signal growing institutional demand for altcoin exposure within regulated frameworks. If approved, these ETFs could introduce significant liquidity and mainstream appeal to both ADA and DOT markets, potentially mirroring the positive impacts seen following Bitcoin and Ethereum ETF approvals. While no immediate market shifts were reported, experts anticipate potential short-term price fluctuations as investors adjust their portfolios in anticipation of regulatory decisions.