Since the inauguration of pro-crypto Donald Trump as the president of the U.S, the crypto market has experienced a surge in exchange-traded funds (ETF) fillings. The latest ETF filing was made by Grayscale Investments with the crypto asset manager joining 21Shares in seeking SEC’s approval for the DOT ETF.
With institutional interest across Polkadot now rising, the price of DOT could recover following the recent market crash. This digital asset has already shown signs of recovery amidst the recent crypto turmoil.
Details of The Grayscale Polkadot ETF Filing
As reported by Bloomberg’s Senior ETF analyst Eric Balchunas, Grayscale sought the US SEC requesting for the approval of the Grayscale Polkadot ETF. This filling was done by Nasdaq on behalf of Grayscale through submission of Form 19b-4. Once approved it will allow Nasdaq to list and trade this investment product.
Under the official documentation the proposed financial asset will involve bringing “shares of the Grayscale Polkadot Trust (DOT)” to trade under Nasdaq Rule 5711(d). Nasdaq will then establish an ETF that will base its value on real-time DOT cryptocurrency prices.
After this initial process, the ETF filing will undergo multiple steps before the SEC approval or rejection. SEC will first have to acknowledge the filling after which it will be published on the national register and proceed to the public comment. The ETF will then undergo the review process to ensure it meets requirements of the federal law. Once review is completed the SEC will either approve the ETF or reject it.
If approved, the Grayscale Polkadot ETF will provide DOT investors with an opportunity to invest in DOT safely. Additionally, the proposal reveals an increasing competition among asset management companies that seek to launch innovative digital asset products for institutional investors as well as retail investors.
DOT Price Analysis and Technical Outlook
The price of DOT, the native token of the Polkadot ecosystem, is trading at $4.510 as of the time of this writing. DOT’s price has shown a minor recovery of just 0.04% after recording lower prices earlier today.
The coin has short-term resistance at $4.552 which if breached could see prices rise towards $4.653. However, if the price fails to hold upward momentum it could drop towards short-term support at $4.441. If this level fails to hold, DOT could drop towards the next short-term support at $4.367.
Technical indicators for DOT shows that this cryptocurrency is at the neutral zone. The RSI for instance is at 54.33 just slightly above the 50 mark (neutral point). This however shows a slight bullish momentum which will strengthen if RSI rises towards 70.
On the other hand, the MACD line for Polkadot is approaching the signal line from below hinting that bulls might be regaining control. If bulls gain control, the price could surge further regaining a rather bullish momentum.
Polkadot Upgrades Set To Boost the Price of DOT
The Polkadot ecosystem is set to have several changes in the near future. According to a recent post on X by Pikachu, “Polkadot 2.0 is coming soon, and there will be significant changes to the ecosystem.” Upgrading the ecosystem to Polkadot 2.0 will improve efficiency, scalability and developer experience.
Nonetheless, the major changes will happen to the Parathread model. This model utilizes the parachain slots has posed a great challenge for use in smaller projects. However, now these issues will be addressed through the Parathread model upgrade.
The Polkadot ecosystem is also set to change the staking system. This change comes to correct the challenge of individuals with large DOT holdings dominating the network. Implementation of the new changes will allow more participants to get involved in staking of DOT hence providing an opportunity for more rewards.
With a culmination of all the changes above, the Polkadot network is set to become more powerful. This will in turn push the prices for DOT upwards. Approval of a DOT ETF could also see prices skyrocket. But the market needs to keep an eye on its development moving forward.
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