The cryptocurrency market has faced a significant correction over the last day. Bitcoin’s (BTC) plummet to sub-$90,000 levels has set off a chain reaction. Other assets follow BTC’s downward trajectory. Ripple’s XRP token is one such victim. XRP’s price has dipped 9.7% in the weekly charts, 4.3% in the 14-day charts, and 19.7% over the previous month. Despite the recent correction, XRP has recovered 3% in the last 24 hours. The asset has also rallied by 325.7% since February 2024.

Also Read: Bitcoin Crash: How High Can BTC Surge In 2025 Now?

Crypto Market Faces The Wrath Of Tariffs

The market dip came after the US reimposed tariffs on Canada and Mexico. The US had previously paused tariffs for 30 days. Bitcoin (BTC), Ripple’s XRP, and other assets have taken a substantial hit after the tariff announcement.

Also Read: Broadcom (AVGO) to Join $1T Club as Stock Still Has 47% Upside

The recent Bybit hack seems to have further fanned the flames of the market dip. The exchange lost nearly $1.4 billion worth of Ethereum-related assets in the attack. XRP also saw a price dip after what is now recognized as the largest such hack in crypto history.

XRP Predicted To Hit New All-Time High Of $4.20

Despite the lackluster market environment, Ripple’s XRP is expected to rally over the coming months. According to CoinCodex, XRP will hit a new all-time high of $4.20 on Apr. 15. XRP will rally by 82.61% if it hits the $4.20 target.

There is a high probability that the SEC will approve a spot XRP ETF this year. The move could lead to a significant rise in investor sentiment. An ETF could also lead to a surge in institutional investments. Such a development could substantially raise XRP’s price.

Also Read: Home Depot (HD) Stock Jumps 4% as Earnings Outperform

There is also a chance that the asset will not rally as predicted. The market is yet to recover. Macroeconomic factors could also present significant hurdles to a market resurgence.

Grayscale Investments, a crypto asset-management company, has officially submitted a filing to the US Securities and Exchange Commission (SEC) to launch a Polkadot exchange-traded fund (ETF) on Nasdaq.

The proposed ETF aims to provide investors with direct exposure to Polkadot’s native token, DOT, by tracking its price performance.

Key Players in Grayscale’s Polkadot ETF Proposal

According to the filing dated Feb. 25, Grayscale intends to list shares of the Grayscale Polkadot Trust under Nasdaq Rule 5711(d), which pertains to Commodity-Based Trust Shares.

Grayscale just filed for a Polkadot ETF pic.twitter.com/bo2UVjAW2U

— Eric Balchunas (@EricBalchunas) February 25, 2025

Grayscale Operating LLC and Grayscale Investments Sponsors LLC, both subsidiaries of Digital Currency Group, Inc., are named as the ETF’s sponsors in the application. Meanwhile, CSC Delaware Trust Company will serve as the trustee, and Coinbase Custody Trust Company, LLC will act as the custodian.

Additionally, BNY Mellon Asset Servicing is set to manage administrative and transfer duties, while Foreside Fund Services, LLC will oversee distribution and marketing efforts. CoinDesk Indices, Inc. will be responsible for providing index services to the trust.

The filing starts a 45-day review period for the regulator to acknowledge the filing. The SEC can approve, or disapprove the application or extend the review period.

Growing Interest in Polkadot ETFs

This marks the second application for a Polkadot ETF in 2025.

On Jan. 31, asset manager 21Shares also submitted a request to the SEC to launch a spot Polkadot ETF.

It comes four years after 21Shares took a step forward by introducing a similar investment product in Switzerland. In February 2021, the asset manager launched the world’s first Polkadot ETP on the Swiss SIX exchange.

Despite the increasing interest in crypto ETFs, some industry analysts remain cautious about the potential success of a Polkadot-focused fund. Bloomberg Intelligence analyst James Seyffart pointed out in his Feb. 1 X post that the filing has been met with considerable skepticism:

“But 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.”

idk who needs to hear this but 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

— James Seyffart (@JSeyff) January 31, 2025

Altcoin ETFs on the Rise

Asset managers are not just looking at Polkadot.

Several firms have applied to launch ETFs for other altcoins, including Solana (SOL), XRP (XRP), Cardano (ADA) and Litecoin (LTC).

On Jan. 31, Grayscale itself, which already offers Bitcoin (BTC) and Ether (ETH) ETFs, filed with the SEC to convert its XRP Trust into an ETF, and on Feb. 10 filed to list a spot Cardano ETF.

On Feb. 21, Franklin Templeton filed for a spot Solana ETF, aiming to bring SOL exposure to traditional investors.

CoinShares also submitted applications for XRP and Litecoin ETFs, with the SEC acknowledging them the same month. After adding the CoinShares Litecoin ETF and CoinShares XRP ETF to the Federal Register on Feb. 19, the SEC opened a 21-day comment period for public feedback on the filings.

The agency has also already accepted spot XRP ETFs and other applications from several firms, including 21Shares, Bitwise, and Grayscale.

On Jan. 29, Bitwise also submitted an S-1 registration application to the SEC to launch a spot Dogecoin (DOGE) ETF.

Bloomberg analysts expect some of these altcoin ETFs to be approved by 2025. Eric Balchunas and James Seyffart predict a 90% chance that the SEC will approve Litecoin ETFs.

XRP ETFs are also in line for regulatory approval. Balchunas and Seyffart estimate a 65% chance that the SEC will greenlight spot XRP ETFs.

Our official alt coin ETF approval odds are out. Litecoin leads w 90% chance, then Doge, followed by Solana and XRP. We are only doing for 33 Act $IBIT-esque filings. But def poss to see futures or Cayman-subsidiary type 40 Act stuff get through as well. https://t.co/JSaNnifjbu

— Eric Balchunas (@EricBalchunas) February 10, 2025

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