Asset management company 21Shares has submitted an S-1 to the SEC for a Polkadot ETF, intending to list shares on the Cboe BZX Exchange.

Named the 21Shares Polkadot Trust, this new ETF will closely mirror the existing Polkadot Trust.

Set to enter the competitive Altcoin ETF arena, the 21Shares Polkadot ETF will be linked to DOT prices through the CME CF Polkadot-Dollar Reference Rate, with Coinbase Custody securing the assets.

Employing a passive investment approach, the fund will steer clear of leverage, derivatives, and active trading. Interestingly, Polkadot's value has not responded notably to this development, with DOT experiencing a 10% decline in January.

Analyst James Seyffart highlights the market's role in determining the success of such offerings, underlining the freedom of entities to launch SEC-approved ETFs based on the market demand.

This filing from 21Shares arrives following Tuttle Capital Management's recent proposal for a 2x leveraged Polkadot ETF, which has since been withdrawn along with all other 2x leveraged ETF filings.

In the wake of Gary Gensler's departure from the SEC, a multitude of altcoin ETF applications have inundated the commission, including Grayscale's launch of a Dogecoin Trust with a 2.5% management fee to cater to escalating investor interest.

Grayscale swiftly converted this trust filing to an ETF application the same day, marking a significant move in the industry.

Grayscale has also sought ETF approvals for XRP, Litecoin, and Solana, following the successful launch of their Bitcoin Miners ETF, aimed at providing exposure to Bitcoin-related companies for conventional investors.

With 21Shares also pursuing approval for an XRP ETF, a potential nod from the SEC seems probable, although the regulatory body may postpone additional altcoin ETF approvals during the interim leadership phase.

While awaiting the confirmation of Paul Atkins as SEC chair, the commission is considering the acceptance of a Litecoin ETF application from Canary Capital, leveraging Litecoin's non-security status as a Bitcoin fork to bolster its appeal to investors.