The SEC reviews Grayscale's applications for XRP and Dogecoin ETFs

NYSE Arca Proposes Listings for Grayscale XRP and Dogecoin Trusts

The United States Securities and Exchange Commission (SEC) has acknowledged proposed rule changes that would enable NYSE Arca to list and trade shares of the Grayscale XRP Trust and Grayscale Dogecoin Trust.

Grayscale XRP Trust Impacted by Legal Concerns

This development is particularly significant for the Grayscale XRP Trust, considering the ongoing legal battle between Ripple and the SEC regarding the classification of XRP.

Review and Approval Process

According to Bloomberg ETF analyst James Seyffart, a 45-day review period will commence upon the proposal's publication in the Federal Register. While the SEC's acknowledgment signals a positive step, it does not guarantee approval. The SEC has historically exhibited caution towards crypto investment products, leading to the withdrawal of similar applications.

Public Comment and SEC's Decision

The SEC has also opened a 21-day public comment period for the proposals submitted via NYSE Arca. Following this period, the SEC will determine whether to approve or reject the proposals or seek further action.

Grayscale's ETF Expansion

Grayscale, the world's largest digital asset manager, has filed a 19b-4 form seeking approval for the Grayscale XRP Trust, which held approximately $16.1 million in assets as of January 22, 2025. NYSE Arca submitted a 19b-4 form for the Grayscale Dogecoin Trust on January 31, coinciding with the launch of the trust.

These proposed ETFs would provide investors with exposure to digital assets without direct ownership. Coinbase Custody Trust Company will serve as the custodian, while BNY Mellon will handle administrative and transfer agent responsibilities.

Grayscale continues to expand its ETF offerings and aims to convert its trusts for XRP, Litecoin, and Solana into ETFs. It is also seeking approval to introduce a Cardano Trust.