US SEC Acknowledges Grayscale’s Dogecoin and XRP ETF Filing—What’s Next for These Crypto ETFs?

Grayscale's Dogecoin and XRP ETF Applications Under SEC Review

The United States Securities and Exchange Commission (SEC) has accepted Grayscale's filings for Dogecoin and XRP exchange-traded funds (ETFs). This marks a significant milestone in the regulatory process, signaling potential approval.

Formal Review Process Initiated

The SEC's acceptance triggers a formal evaluation period that will determine the fate of these investment products. Grayscale submitted 19b-4 filings for both its Dogecoin and XRP Trusts to the New York Stock Exchange.

Several other asset management firms have also filed applications for Dogecoin ETFs, including Bitwise and REX Shares. Bitwise, Canary Capital, 21Shares, and WisdomTree have submitted applications for XRP ETFs.

Upon acceptance, the SEC must publish all relevant filings in the federal register and make a decision within 240 days.

Analysts See High Probability of Approval

Analysts James Seyffart and Eric Balchunas of Bloomberg predict a 75% chance of approval for the Dogecoin ETF and a 65% chance for the XRP ETF. These estimates reflect recent changes in regulatory attitudes and increased institutional demand for cryptocurrency investments.

Seyffart believes that the previous SEC administration would have rejected such submissions outright. The denial of Solana ETF applications under the current leadership indicates a more favorable environment for approval.

Implications for the Crypto Market

ETF Store President Nate Geraci suggests that SEC acknowledgment could impact the ongoing lawsuit against Ripple. Legal expert Jeremy Hogan believes the lawsuit will likely conclude before XRP ETF approval.

Ripple CEO Brad Garlinghouse has previously predicted the emergence of such ETFs. Analysts see this development as a bullish signal for Dogecoin and XRP.

While SEC acknowledgment does not guarantee approval, it represents a positive step towards wider acceptance of cryptocurrencies in financial markets. The outcome of the decision-making process will be closely monitored by industry experts and investors.