The Securities and Exchange Commission (SEC) received a proposed rule change from The Nasdaq Stock Market LLC to list and trade shares of the Grayscale Polkadot Trust under Nasdaq Rule 5711(d). This trust will hold and manage Polkadot tokens, offering an investment avenue without direct ownership of the digital currency. The proposed rule includes measures to prevent fraud and manipulation, and outlines how the shares will be created, traded, and redeemed. The SEC is reviewing the proposal and inviting public comments for potential approval or disapproval.
Simple Explanation
The SEC is thinking about letting a special type of investment fund, called the Grayscale Polkadot Trust, be bought and sold on the Nasdaq. This fund helps people invest in a thing called Polkadot without actually owning any, but they're making sure to set rules so nobody cheats or makes a mess of things.