Institutional investors are considering a variety of crypto ETFs including Polkadot, with 21Shares recently registering the Polkadot Trust in Delaware following the launch of the Polkadot ETP on the Swiss SIX exchange in 2021 . The move sparked debate over whether Polkadot would struggle against competitors like Solana. And XRP.
This week, 21Shares registered Polkadot Trust in Delaware to provide accredited investors with exposure to Polkadot's smart contract ecosystem.
The asset management company launched Europe's first Polkadot exchange-traded product (ETP) in 2021, listing it on the Swiss SIX exchange.
Related: Solana blockchain hits new record after PENGU token launch
However, Polkadot's performance, so to speak, is not that impressive compared to competitors such as Solana and XRP, so it is very difficult to find immediate demand for such an investment product.
Grayscale also registered a trust containing Polkadot as part of Grayscale's broader smart contract platform Ex-Ethereum Fund in 2021. The fund also holds other assets such as Solana (SOL), Cardano (ADA), Avalanche (AVAX), and NEAR Protocol (NEAR).
The fund has modest assets under management (AUM) of US$5.28 million (AU8.47 million) and a weighting of 6.97% to DOT.
After all, if XRP and Solana have a rocky road to potential ETF approval (or revision), what's left for the rest of the market? The U.S. Securities and Exchange Commission (SEC) classifies these assets as securities in ongoing litigation, further complicating the path to ETF approval.
meanwhile…
US Bitcoin ETFs have enjoyed remarkable success, with year-to-date inflows reaching US$37 billion (A$59.4 billion) since January. This demand includes 15 consecutive days of inflows from late November to mid-December, according to Soso Value.
Bloomberg ETF expert Eric Balchunas noted that BlackRock's iShares Bitcoin Trust (IBIT) achieved US$50 billion (A$80.2 billion) of growth, the fastest in ETF history.
and near that lock $IBIT pass $GLD Curr, the king of value store ETFs, owns 78% of GLD's assets and has no chance of reaching that goal by January 11 in its first year. Another crazy feat from this fastest ETF to $50 billion chart: pic.twitter.com/lkvRKv5lOB
— Eric Balchunas (@EricBalchunas) December 19, 2024
What about Ethereum? Well, it's no wonder it hasn't been as successful as Bitcoin ETFs in terms of inflows, but analyst Nate Geraci says Ethereum ETFs are “keeping pace” with gold, suggesting Bitcoin ETFs will soon accelerate. I predict that will happen.
Updated chart showing cumulative flows into Gold, Bitcoin and Ethernet ETFs…
Gold ETF was launched in November 2004.
Btc ETF in January 2024.
Eth ETF July 2024.
The Ether ETF is currently tracking at the same pace as gold, but we expect inflows to accelerate from here.
The flow of the BTC ETF is completely ridiculous.
via @Todd_Sohn pic.twitter.com/efh8Hezz3e
— Nate Geraci (@NateGeraci) December 19, 2024
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