The United States Securities and Exchange Commission (SEC) has officially acknowledged Grayscale’s filings for spot XRP and Dogecoin exchange-traded funds (ETFs), signaling the start of the review process that could potentially see these crypto funds hitting the market later this year.
In a significant development on Feb. 13, the commission published notices for Grayscale’s Form 19b-4 filings, a necessary procedural step before the commencement of a 240-day window for review and decision on the applications.
The countdown for the review process officially begins once the filings are entered into the Federal Register, which usually occurs shortly after the commission acknowledges the applications. If the process moves forward promptly, a final decision could be expected by mid-October.
Notably, Fox Business journalist Eleanor Terrett highlighted that while the acknowledgement does not guarantee automatic approval, it does indicate a shift in the SEC’s stance towards crypto ETFs. She emphasized that the current leadership of the agency is more open-minded and willing to engage with crypto ETF proposals rather than outright dismissing them.
Terrett recalled a previous incident in December when exchanges withdrew Solana ETF applications following signals from the SEC, then led by Gary Gensler, indicating a lack of interest in engaging with such proposals. However, under new leadership, the SEC appears to be more receptive to considering these filings, raising hopes for the eventual launch of these crypto-based products.
Looking ahead, Terrett anticipates that the SEC will soon shift its focus to XRP ETF applications from other issuers who have followed Grayscale’s lead. Four other issuers, including Bitwise, 21Shares, Canary Capital, and WisdomTree, have submitted their own proposals which are currently awaiting acknowledgment.
On Jan. 30, NYSE Arca filed a proposed rule change with the SEC to list and trade shares of the Grayscale XRP Trust, followed by a similar filing for the Grayscale Dogecoin Trust on Jan. 31.
Bloomberg analysts James Seyffart and Eric Balchunas have estimated the approval chances for XRP and Dogecoin ETFs at 65% and 70% respectively.
Overall, the acknowledgment of Grayscale’s ETF filings by the SEC marks a significant step forward in the potential approval of XRP and Dogecoin ETFs, reflecting a more open-minded approach from the regulatory body towards crypto-based financial products.