Nasdaq has filed a proposal with the Securities and Exchange Commission (SEC) to list and trade shares of the 21Shares Polkadot Trust under Nasdaq Rule 5711(d), which deals with Commodity-Based Trust Shares. The trust aims to track the performance of Polkadot (DOT) without directly holding the cryptocurrency, allowing investors to access the market indirectly through traditional brokerage accounts. As part of its investment strategy, the trust will not use leverage or derivatives and will be managed by 21Shares US LLC. The SEC is seeking comments from the public on this proposed rule change, which must be approved to ensure it aligns with regulations designed to protect investors and prevent fraudulent activities.
Simple Explanation
Nasdaq wants to let people trade shares of a special fund that follows the value of a thing called Polkadot, which is a kind of digital money. This way, people can invest in Polkadot without owning it directly, just like buying a toy that represents something else.