SEC Postpones Decision on Polkadot ETF Proposal

The U.S. Securities and Exchange Commission (SEC) has postponed its decision on a proposed exchange-traded fund (ETF) linked to Polkadot’s native token, DOT. A filing released on April 24, indicates that the regulator has extended its review timeline to June 11, 2025, following Nasdaq’s application to list the Grayscale Polkadot Trust as a spot ETF on February 24, 2025.

The SEC’s delay applies to a rule change that would permit the Grayscale Polkadot Trust to trade on U.S. exchanges, tracking DOT’s spot price. The extension pushes the initial 45-day review period to a maximum of 240 days, a common practice when additional time is needed to evaluate applications. The filing did not specify reasons for the delay, which aligns with the SEC’s standard process for complex financial products.

Launched in 2020 by Ethereum co-founder Gavin Wood, Polkadot is a blockchain protocol focused on interoperability between networks. It enables cross-chain communication through its relay chain and parachain architecture. Recent developments, such as the JAM (Join-Accumulate Machine) upgrade, have underpinned growing interest among developers and institutions like Grayscale. 21Shares, another asset manager, has a separate Polkadot ETF application under review, also awaiting SEC action.

Institutional investors are increasingly pursuing exchange-traded funds (ETFs) tied to altcoins. Bloomberg analyst Eric Balchunas reports that over 70 crypto ETF proposals are currently pending across various tokens and structures. A report from Coinbase and EY-Parthenon highlights this trend, revealing that 83% of institutions surveyed plan to increase their crypto allocations in 2025, driven by optimism about digital assets. However, approval of an ETF in the U.S. does not guarantee widespread adoption, particularly for funds tied to lesser-known altcoins with limited market depth. Balchunas noted this trend in another post, that launching an ETF is like “a band getting its songs added to all the music streaming services.”—it may not guarantee widespread interest, but it places the asset where a the vast majority of “listeners” can access it.

Crypto ETFs pending SEC review.

Source: Eric Balchunas