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The U.S. Securities and Exchange Commission (SEC) has taken a significant step towards the approval of spot XRP and Dogecoin exchange-traded funds (ETFs). On February 13, the SEC officially acknowledged filings from crypto asset manager Grayscale to list the Grayscale XRP Trust and Grayscale Dogecoin Trust. This marks the beginning of a 240-day review period for the SEC to assess and potentially approve the applications.
Once the filings are submitted to the SEC’s federal register—likely within days—the countdown will start, with a decision deadline set for mid-October. Grayscale’s filings come on the heels of other notable applications, including those for Litecoin (LTC) and Solana (SOL) ETFs, signaling a shift in the SEC’s stance toward crypto-related listings under current leadership. The agency’s previous rejection of similar applications, including Grayscale’s Bitcoin Trust conversion, has fueled industry concerns over regulatory uncertainty.
Bloomberg ETF analysts James Seyffart and Eric Balchunas predict a high likelihood of approval for both the XRP and Dogecoin ETFs, forecasting a 65% and 75% chance of approval by 2025, respectively. Meanwhile, they’ve given a 90% probability that a Litecoin ETF will gain approval by year-end.
However, obstacles remain, particularly for XRP. While a partial victory for Ripple Labs in August 2023 ruled that XRP wasn’t a security when sold on secondary markets, the SEC’s ongoing appeal has left the cryptocurrency’s classification in limbo. Seyffart suggests that the SEC may withhold approval for an XRP ETF until the lawsuit against Ripple Labs is fully resolved.
In contrast, Dogecoin’s path to SEC approval appears more straightforward. With no clear security classification, Dogecoin shares many characteristics with Bitcoin—whose ETFs have already been approved—making it an attractive candidate for the agency’s consideration.
Also Read: SEC Acknowledges XRP ETF Filing: What It Means for the Future of Crypto ETFs
As the SEC reviews these filings, the cryptocurrency market is closely watching to see how regulatory shifts could shape the future of crypto ETFs.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
