The U.S. Securities and Exchange Commission (SEC) has again extended the review period to evaluate whether Nasdaq’s proposal to list and trade shares of the 21Shares Polkadot Trust should be approved, citing unresolved concerns about fraud and investor protection.
Filled by Nasdaq on March 17, 2025, the proposal seeks to list the DOT-backed trust under Nasdaq Rule 5711(d), which governs Commodity-based Trust Shares. If approved, it would be one of the first US listed investment products directly tied to Polkadot (DOT).
The trust sponsored by 21Shares US LLC, is designed to track performance of DOT using CME CF Polkadot-Dollar Reference Rate. The digital assets would be securely held by Coinbase Custody and the trust would issue or redeem shares in blocks of 10,000, settled entirely in cash.
In today’s release, the SEC states that further analysis is needed to determine whether the proposal compiles section 6(b)(5) of the Securities Exchange ACT. These sections require exchange listing to prevent fraud, manipulation and protect investors.
The SEC also seeks public inputs and is opening a comment window as its next step. Interested parties including investors, legal experts, and industry stakeholders are invited to submit written comments within 21 days of the proposals publication in the Federal Register. Those wishing to submit rebuttals will have 35 days from publications.
For 21Shares and other ETF issuers looking to expand beyond Bitcoin and Ethereum, the SEC’s decision will be a critical benchmark. With the new chairman Paul Atkins, every crypto enthusiast has high hopes.
Also Read: US Senate’s New Crypto Bill Challenges SEC, Favors CFTC
