21Shares has renamed its Polkadot ETF to the Polkadot Staking ETF, with the new code TDOT registered. The structure of a staking ETF means that the staking rewards from the underlying DOT holdings are added to the NAV, which can be viewed as a “hold-and-earn” position strategy.
By comparison with the current price: DOT is $0.8810. After breaking below the $1 dense trading area, it has been consolidating. If we back-calculate from double-digit annualized staking returns, the current level falls within an undervalued range. However, note that the systematic reference level for the staking strategy is $0.75, and the current price still has a buffer to that level.
On-chain liquidity supports the viability of this strategy: the ETF has shifted from ordinary holding to a staking version, reducing selling pressure from the float. If increased volume appears around $0.88, the entry safety margin for the staking strategy will rise accordingly. #DOT
By comparison with the current price: DOT is $0.8810. After breaking below the $1 dense trading area, it has been consolidating. If we back-calculate from double-digit annualized staking returns, the current level falls within an undervalued range. However, note that the systematic reference level for the staking strategy is $0.75, and the current price still has a buffer to that level.
On-chain liquidity supports the viability of this strategy: the ETF has shifted from ordinary holding to a staking version, reducing selling pressure from the float. If increased volume appears around $0.88, the entry safety margin for the staking strategy will rise accordingly. #DOT