The U.S. Securities and Exchange Commission (SEC) has officially acknowledged Grayscale’s applications to launch spot XRP and Dogecoin exchange-traded funds (ETFs), kicking off a 240-day review process. If everything goes as expected, a final decision could arrive by mid-October.
The acknowledgment by the SEC on Feb. 13 is only the beginning. Once these filings are formally entered in the Federal Register, most likely in the coming days, the countdown will start. This action indicates that the SEC may be softening its stance on crypto-ETFs.
The agency has recently also approved applications for Litecoin (LTC) and Solana (SOL) ETFs, suggesting that it is taking a more amenable stance on products linked to the crypto space. Dozens of similar applications were turned down during the tenure of former SEC Chair Gary Gensler, with Grayscale actually having to resort to legal action in order to have its application to convert its Bitcoin Trust into an ETF approved.
Bloomberg ETF analysts James Seyffart and Eric Balchunas estimate a 75% chance that a Dogecoin ETF gets approved and a 65% chance for XRP, both by the end of 2025. Litecoin’s chances seem even higher, with analysts giving it a 90% likelihood of approval before the end of this year.
But it’s not all smooth sailing, especially for XRP. The SEC is still appealing a previous court ruling that determined XRP is not a security when traded on secondary markets. Until the ongoing legal battle between the SEC and Ripple Labs is fully resolved, XRP’s ETF approval could face delays.
Dogecoin, on the other hand, could have an easier road ahead. Unlike XRP, it hasn’t been classified as a security by the regulators, and its architecture closely resembles Bitcoin, which has already gained ETF approval.
The SEC has 240 days, but the first 45 days start once the filings appear in the Federal Register. Should these receive their stamp of approval, more mainstream investors could be able to gain exposure to XRP and Dogecoin through regular stock exchanges.
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