The U.S. Securities and Exchange Commission (SEC) has acknowledged filings from crypto asset manager Grayscale to list spot ETFs for XRP and Dogecoin. The SEC now has 240 days to review and decide on these applications.
Grayscale's ETF Applications and Review Process
On February 13, the SEC acknowledged Grayscale's Form 19b-4 filings for the Grayscale XRP Trust and Grayscale Dogecoin Trust. This acknowledgment means the agency now has 240 days to review and decide on the applications. The 240-day timer will start once Grayscale's filings are entered into the SEC’s federal register.
History with the SEC
Over the last two weeks, the SEC has acknowledged applications for Litecoin and Solana ETFs, indicating the agency may have shifted its stance on crypto-related listings. Under former chair Gary Gensler, the SEC had rejected Solana ETF applications, prompting Grayscale to pursue legal action regarding its Bitcoin Trust conversion to an ETF.
Expert Predictions and Legal Nuances
Bloomberg analysts James Seyffart and Eric Balchunas predict a 65% and 75% chance for the approval of XRP and Dogecoin ETF applications, respectively, by the end of 2025. Questions remain over XRP’s security status, particularly in light of the ongoing SEC lawsuit against Ripple Labs. In August 2023, Ripple scored a partial victory, with a ruling that XRP wasn’t a security when sold on secondary markets.
While questions about the security status of cryptocurrencies like XRP remain, SEC's review of Grayscale's ETF applications represents a pivotal moment for the cryptocurrency asset market.
