Grayscale has filed applications with the SEC for Exchange-Traded Funds (ETFs) based on Polkadot and Cardano, marking their latest attempt to bring cryptocurrencies to the traditional stock market.

In the ever-evolving world of cryptocurrencies, key figures remain cautiously optimistic as the Securities and Exchange Commission (SEC) continues its review of various regulatory matters. This silence underscores the sensitivity surrounding SEC decisions and the potential impact they could have on the market.

Analysts at Bitfinex predict that altcoins may struggle to rally until more crypto Exchange Traded Funds (ETFs) receive the green light and an influx of liquidity is observed. This is due to the belief that the approval of these ETFs could significantly boost the market and provide a more institutional-friendly entry point for investors.

Grayscale, a prominent name in the crypto space, is at the forefront of this movement. The company has filed S-1 registration statements with the SEC to convert its Avalanche Trust into a spot AVAX ETF and its Dogecoin Trust into a spot DOGE ETF. Moreover, Grayscale is pursuing spot ETF approval for Solana (SOL), Litecoin (LTC), and a multi-crypto fund.

If approved, these Grayscale altcoin ETFs could enable more institutions to invest directly in altcoins under clear regulatory oversight. This could potentially open up the market to a wider range of investors and further legitimize the cryptocurrency sector.

Grayscale is set to launch the Polkadot (DOT) ETF on Nasdaq (tickers: DOT) and the Cardano (ADA) ETF on NYSE Arca (tickers: GADA). These ETFs will be passive in nature, holding cryptos directly in Coinbase custody without leverage or derivatives.

Notably, the institution planning to offer the Polkadot and Cardano ETFs is Grayscale, with the Cardano Trust conversion under review by the US SEC. However, specific listing dates on Nasdaq or NYSE Arca are not yet announced, and authorized participants will ensure direct access to these ETFs.

The race for crypto ETF approvals is heating up, with a total of 92 proposals currently awaiting decisions from the SEC in the U.S. Most final deadlines for these decisions extend to October 2025.

Recent ETF flows in August show a significant shift in investor interest, with Spot Ethereum ETFs pulling in $3.9B and Spot Bitcoin ETFs seeing $750M in outflows. This trend suggests a growing preference for direct exposure to cryptocurrencies rather than indirect investments.

Despite the regulatory hurdles, crypto ETFs are keeping pace and competing well with traditional assets. The SEC's deliberate approach to standardize rules and ensure robust market protections before approving a large wave of new crypto ETFs reflects this competitive landscape.

As the regulatory landscape continues to evolve, it will be interesting to see how the approval of these ETFs impacts the cryptocurrency market and attracts more institutional investment.

Grayscale has filed applications with the SEC for Exchange-Traded Funds (ETFs) based on Polkadot and Cardano, marking their latest attempt to bring cryptocurrencies to the traditional stock market.