Asset management firm 21Shares filed an S-1 with the SEC for a Polkadot ETF. The company plans to list shares on the Cboe BZX Exchange. 

The proposed 21Shares Polkadot Trust will mirror its current Polkadot Trust.

Polkadot Joins the Altcoin ETF Race

 The 21Shares Polkadot ETF will track DOT prices using the CME CF Polkadot-Dollar Reference Rate. According to the filing, Coinbase Custody will hold the assets.

The fund will follow a passive investment strategy. It will avoid leverage, derivatives, and active trading. Notably, Polkadot’s price hasn’t reacted at all to this announcement. DOT remains down by 10% in January.

“The market will decide where value lies and if there’s value in launching such a product. If no one puts money into a Polkadot ETF – it will close. People are free to launch whatever ETFs are deemed to be allowed by the SEC,” wrote analyst James Seyffart.

This filing comes after Tuttle Capital Management proposed a 2x leveraged Polkadot ETF earlier this week as part of a package of 10 leveraged crypto ETFs. 

However, ETF analyst Eric Balchunas confirmed that Tuttle Capital withdrew its filing for all 2x leveraged ETFs. 

Since Gary Gensler left his position earlier this month, the SEC has received a wave of altcoin ETF applications. Earlier today, Grayscale launched a Dogecoin Trust. The trust offers investors exposure to DOGE with a 2.5% management fee amid rising demand. 

Within hours, Grayscale converted the trust filing into an ETF application. This was likely the first time a trust was turned into an ETF on the same day. 

“Man, the jockeying is intense. I’ve never heard of a trust launching and then looking to convert to ETF the same day. But they may now be in pole position in 19b-4 race. Also, we now up to four Doge ETF filings (including 2x). Gensler has only been gone for like two weeks,” wrote Eric Balchunas. 

Grayscale also submitted ETF applications for XRP, Litecoin, and Solana. The firm recently launched a Bitcoin Miners ETF. The fund offers exposure to Bitcoin-linked companies without investing directly in cryptocurrency. It appeals to traditional investors.

SEC Likely to Wait for Paul Atkins

Along with the Polkadot ETF filing, 21Shares has a pending XRP ETF application with the SEC. Approval of an XRP ETF appears likely, but the SEC may delay further altcoin ETFs under the temporary leadership. 

Currently, Mark Uyeda leads the SEC on an interim basis. Paul Atkins, President Trump’s nominee, is still waiting for the congressional process to become the permanent chair.

However, when the SEC approves another altcoin fund, Litecoin may be the first. The commission has acknowledged Canary Capital’s Litecoin ETF application. 

It also helps that Litecoin is already classified as a non-security because it’s a fork of Bitcoin.

T3 FCU, a group consisting of Tron, Tether, and TRM Labs, helped Spanish authorities freeze $26.4 million used in a crypto money laundering operation.

Although law enforcement did not mention any arrests in this case, this collaboration still managed to expose and financially hamstring a major international crime ring.

T3 FCU Strikes Back at Crypto Crime

In recent months, the T3 Financial Crimes Unit (FCU) has become a popular name in crypto security. The unit has been actively taking on several high-profile cases. The group formed last September out of an alliance of Tron, Tether, and TRM Labs, and it froze a $100 million money laundering operation this month.

According to a new report, the group helped Spanish authorities bust a similar ring this week.

“This [criminal] organization moved millions across borders, using both cash and crypto to help criminal groups launder their profits. Working with T3 FCU, we were able to freeze more than $26.4 million in assets. This partnership gives law enforcement powerful new capabilities in our fight against organized crime,” a Guardia Civil spokesperson said.

This criminal group operated in several European nations, but the public-private partnership between Spanish law enforcement and T3 FCU successfully tracked its operations.

TRM Labs is a major blockchain intelligence platform, consistently tracking large crypto crimes and advising various law enforcement agencies. As a part of the T3 Unit, TRM Labs likely provides the critical intel laundered crypto assets to Tether and Tron.

In recent months, Tether has actively ramped up anti-money laundering efforts. The stablecoin giant has coordinated with several major law enforcement agencies to show compliance with AML policies.

Tether has tracked and frozen several major crypto scams well before T3 FCU was established. In the press release, CEO Paolo Ardoino stated that Tether was especially committed to financial integrity because USDT is such an integral part of the global crypto trade.

“If you’re using USDT on TRON for crime, you will be caught,” said Tron founder Justin Sun earlier this month.

Although Tron is one of the most popular networks, its inclusion in the T3 Unit does seem questionable. Its founder, Justin Sun, faced SEC charges in 2023, and several failed projects have severely damaged the firm’s reputation.

Nevertheless, Sun claimed that TRON’s transparency “makes it harder, not easier, to launder money,” and showed strong commitment to T3’s crime-fighting initiative.

In any event, this episode was another win for T3 FCU. Spanish authorities handled traditional police surveillance techniques, while the crypto firms searched through blockchain data alongside VASP and KYC records.

Dogwifhat’s price dropped nearly 10% in one hour after the Vegas Sphere denied any deal with the meme coin. A crowdfunding campaign raised around $700,000 to put WIF on the Sphere, but this never materialized.

Developers claim that they conducted negotiations through an intermediary due to their non-corporate structure, but this statement may be totally fraudulent.

Did Dogwifhat Lie About Partnership with Las Vegas Sphere?

It’s been a challenging new year for the popular dog-themed Solana meme coin. The token’s price began dropping in November and hasn’t quite recovered. Although a few speed bumps have periodically interrupted this decline, the downward trend is inexorable.

Today, new reports denying any partnership between Dogwifhat and the Vegas Sphere caused the meme coin’s price to plunge nearly 10%.

“We have never had a deal with Dogwifhat, and our agency at the time only had one very preliminary conversation early last year. There was and is no plan for Dogwifhat to appear on the Exosphere, and we are distressed they are using our name for fraudulent purposes,” a Vegas Sphere representative claimed in an interview.

Initially, it may seem strange that the Vegas Sphere has such an impact on Dogwifhat’s price. However, a crowdfunding campaign from early 2024 promised that WIF would appear on the Sphere and raised over $700,000.

Earlier this week, developers teased a Sphere launch, saying they would post dates “as soon as we are allowed to share.”

It appears this was a complete fabrication. Earlier in the week, WIF surged 34% after the Vegas Sphere tease but quickly dropped when the deal never materialized.

Now that the Sphere has accused WIF developers of misinformation, these price wobbles turned into an immediate 10% drop.

The meme coin’s team, for its part, has fervently denied any foul play. In a recent social media post, it claimed that Dogwifhat organizers have been in “ongoing negotiations” with Vegas Sphere representatives.

They claim to have acted through an intermediary since they don’t have a formal corporate structure. They also promised to refund the $700,000 crowdfunded assets if the deal falls through.

“If, by any chance, the plan is not executed, then the contract will be voided and contributions will be returned. There has been no intent to mislead any parties,” Dogwifhat posted on X (formerly Twitter).

Of course, this statement could be a complete lie. Appalling meme coin schemes have risen dramatically since Trump launched his own token, bringing in huge numbers of complete newcomers.

However, If the Dogwifhat team made up a story about the Vegas Sphere to hype up their own meme coin, it’d be far from the worst scam in today’s crypto industry.