In a significant move for the cryptocurrency industry, the U.S. Securities and Exchange Commission (SEC) has taken a step forward in reviewing spot exchange-traded funds (ETFs) filing for XRP.
Grayscale Investments, a major player in crypto asset management, has filed applications to list XRP and Dogecoin ETFs, and the SEC has now officially acknowledged these filings. This development is expected to shape the future of crypto investment products and open doors for broader institutional adoption.
The SEC’s acknowledgment, issued on February 13, confirms the acceptance of Grayscale’s Form 19b-4 filings for the Grayscale XRP Trust and Grayscale Dogecoin Trust. While this does not equate to automatic approval, it triggers a structured review process that will span a maximum of 240 days.
The formal countdown begins once the filings are entered into the Federal Register, a step that typically takes a few days. If processed soon, the SEC’s final decision could arrive by mid-October.
Also Read: Here is DeepSeek AI XRP Prediction For 2025
Regulatory Shift in Crypto ETF Approach
The SEC has historically been cautious about approving cryptocurrency-based ETFs, particularly under former Chair Gary Gensler. The agency previously rejected several applications, including two Solana ETF proposals.
Grayscale had to engage in a lengthy court battle to force the SEC to consider converting its Bitcoin Trust into an ETF. However, under new leadership, the SEC appears to be more open-minded on crypto-related investment products.
The forecast from Bloomberg ETF analysts predicts that XRP ETF will achieve SEC approval with a 65% chance by 2025 end while Dogecoin possesses a 75% likelihood rate. The analysts forecast that a Litecoin ETF has a 90 percent chance of obtaining SEC approval this year.
Meanwhile, Ripple Labs faces an ongoing appeal from the SEC, which asserts that the company broke securities law by selling XRP to retail investors. An XRP ETF approval might remain ambiguous until legal issues surrounding this cryptocurrency conclude.
Dogecoin’s ETF path may be more straightforward, as the SEC has not previously expressed concerns about its classification as a security. The chances for Dogecoin to get regulatory approval increase because it maintains features comparable to Bitcoin, which already has active SEC-approved Exchange-Traded Funds (ETFs).
Grayscale Dogecoin ETF Filing and Review
The SEC’s published release under number 34-102416 documents NYSE Arca Inc.’s January 31, 2025 filing to list Grayscale Dogecoin Trust shares according to NYSE Arca Rule 8.201-E. The SEC reviews the modified filing NYSE Arca Inc. submitted on January 31, 2025.
The Dogecoin Trust document describes its operational setup as Coinbase Custody Trust Company, LLC managing its custody responsibilities and BNY Mellon Asset Servicing doing administrative work.
The CoinDesk Dogecoin Price Index is the base for conducting Dogecoin Trust value assessments. Asset custody, trading, and pricing transparency are implemented through trust structures to secure against intentional manipulation by enforcing strict requirements.
Market Impact and Investor Sentiment
Investor interest in XRP surged after the SEC’s acknowledgment, as analysts suggested an ETF listing could improve accessibility for retail and institutional investors. XRP has maintained a strong presence in the crypto market, particularly in cross-border payments.
If approved, an ETF could provide more liquidity and legitimacy, making it an attractive investment option. Following the announcement, XRP increased by 11.49% within 24 hours and is currently trading at $2.73, according to CoinMarketCap data.
Fox Business journalist Eleanor Terrett noted that acknowledgment does not guarantee approval but signals a shift in the SEC’s stance. The SEC now interacts actively with crypto ETF proposals more constructively than its predecessors, who instantly denied such applications.
After Grayscale submits its application for an XRP ETF, the SEC will review similar proposals from other issuers. The regulatory bodies remain uncertain about approval for proposed funds by Bitwise and its fund industry peers, along with 21Shares, Canary Capital, and WisdomTree.
These organizations have presented their proposals to the regulator for acknowledgment purposes. With the regulatory review process underway, the crypto industry closely monitors the SEC’s next steps.
ETF approvals could significantly impact market dynamics and influence broader acceptance of digital asset investment products.
Also Read: Ripple vs. SEC Lawsuit Could End Sooner Than Expected, Here is Why
