SEC Begins Review of Grayscale’s XRP and Dogecoin ETF Applications

The United States Securities and Exchange Commission (SEC) has accepted Grayscale’s application for spot XRP and Dogecoin exchange-traded funds (ETFs), initiating a formal review process.

Key Points

• This marks a potential shift in the SEC's regulatory stance toward cryptocurrency ETFs.
• Ripple CEO Brad Garlinghouse indicated this acknowledgment aligns with his belief that an XRP ETF approval was inevitable.
• Under previous SEC leadership, similar proposals faced dismissals, discouraging asset managers from applying.
• The SEC has opened a 21-day public comment period for market feedback on the proposed ETFs.
• Recent approvals of Bitcoin and Ethereum ETFs have set a precedent for further applications.
• Grayscale's XRP ETF faces legal challenges as the SEC is still litigating against Ripple regarding XRP's classification as a security.
• Bloomberg analysts estimate a 75% chance of Dogecoin ETF approval and 65% for XRP, with decisions expected by the end of 2025.

Canadian firm Purpose Investments has also applied for an XRP ETF, seeking regulatory approval in Canada.