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21Shares Launches First US Spot Polkadot ETF

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21Shares has launched the first U.S. spot DOT ETF just a week after it launched one of the first spot ETFs for SUI.

21Shares has launched the first U.S. spot Polkadot ETF, known as TDOT, today, March 6, according to a press release from the firm.

The crypto exchange-traded product issuer noted that its spot ETF for Polkadot’s native asset, DOT, is registered under the Securities Act of 1933, not the Investment Company Act of 1940 — like most U.S. crypto ETPs.

Bloomberg’s senior ETF analysts, Eric Balchunas, posted about the launch on X today, noting its 0.30% fee and that “it looks like it was seeded with $11m.”

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DOT Slumps on the News

Polkadot is known as a Layer 0 chain, as it consists of an ecosystem of networks with a shared base layer. With a market cap of approximately $2.4 billion, Polkadot is currently the 38th largest network, according to CoinGecko.

DOT is down about 2% over the past 24 hours, despite the ETF news, as the broader market sees a downturn on increased economic and geopolitical uncertainty.

The token saw a sharp rally last month on expectations around its upcoming halving event, as The Defiant reported.

the-defiant
DOT 1-month price chart. Source: CoinGecko

TDOT marks the latest altcoin ETF to launch in the U.S. — a trend that accelerated notably last year. Just last week, 21Shares also issued one of the first spot ETFs for Sui (SUI), as The Defiant reported.

The first spot crypto ETF to launch in the U.S. was, fittingly, for Bitcoin. After years of attempts, 11 issuers were approved at once in a landmark decision in January 2024.

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Crypto World

Stablecoins Do Not Threaten Banking Just Yet: Analyst

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Stablecoins Do Not Threaten Banking Just Yet: Analyst

The impact of stablecoins on the banking sector appears “limited” at the current phase of the adoption cycle, but banks could face increasing competition and an erosion of market share as the stablecoin sector and tokenized real-world assets (RWAs) grow in market capitalization. 

“So far, the use of stablecoins remains limited, but their market capitalization exceeded $300 billion at the end of last year,” Abhi Srivastava, associate vice president of Moody’s Investors Service Digital Economy Group, told Cointelegraph.

The stablecoin market cap has surged past $300 billion. Source: RWA.xyz

The role of stablecoins in payments, cross-border commerce and onchain finance is “expanding,” despite their currently limited role, Srivastava said, adding that existing payment systems in the US are already “fast, low-cost and trusted.” He said:

“For the banking sector, at this stage, disruption risk appears limited. In the near term, US rules that prohibit stablecoins from paying yield mean they are unlikely to replace traditional deposits at scale domestically.”

However, over time, growing adoption of stablecoins and tokenized RWAs, traditional or physical financial assets represented on a blockchain by a token, could place “pressure” on the banking sector, leading to deposit outflows and reduced lending capacity, he said.

Stablecoin regulatory policy has become a hot-button issue among crypto industry executives and those in the banking sector, with fears that yield-bearing stablecoins could erode banking market share proving to be a stumbling block for the CLARITY crypto market structure bill in Congress. 

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Related: Stablecoins behave like FX markets as liquidity splits: Eco CEO

CLARITY Act stalled, as banks fight yield-bearing stablecoins

The Digital Asset Market Clarity Act of 2025, also known as the CLARITY Act, is a comprehensive crypto market regulatory framework that establishes an asset taxonomy, regulatory jurisdiction and oversight over the crypto markets.

The CLARITY crypto market structure bill. Source: US Congress

It is now stalled in Congress after a group of crypto industry companies, led by cryptocurrency exchange Coinbase, publicly stated opposition to earlier drafts of the bill.

A lack of legal protections for open-source software developers and a prohibition on yield-bearing stablecoins were among some of the most contentious issues cited by crypto industry opponents of the legislation.

Several attempts have been made by US lawmakers and the White House to negotiate a bill acceptable to both the crypto industry and the bank lobby.

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Earlier this month, North Carolina Senator Thom Tillis said he plans to release an updated draft bill proposal that would be acceptable to both sides; however, the bill has reportedly received pushback, according to Politico, and has yet to be publicly released. 

However, other crypto industry executives and market analysts have warned that if the CLARITY Act fails to pass, it could open the crypto industry up to future regulatory crackdowns by hostile lawmakers and officials.

Magazine: Stablecoins will see explosive growth in 2025 as world embraces asset class