- Dogecoin potential ETF is gaining traction, with the SEC acknowledging Grayscale’s filing.
- This move signals a positive shift for Dogecoin’s future in mainstream investment.
In a major development on Thursday, the SEC officially acknowledged Grayscale’s application to convert its XRP and Dogecoin Trusts into ETFs. This decision marks an important shift in the SEC’s approach to cryptocurrency products, signaling potential regulatory change.
The SEC filed a notice seeking public input on Grayscale’s proposal under NYSE Arca Rule 8.201-E, specifically for the XRP Trust. Shortly after, they made a similar request for Grayscale’s Dogecoin Trust. This acknowledgment is a step toward making these popular digital assets more accessible to mainstream investors.
A Shift in Regulatory Approach
The SEC’s willingness to consider these crypto ETF filings reflects a significant shift. Just a few months ago, in December, the SEC showed minimal engagement with Solana-related ETF applications. Now, the regulatory body is actively reviewing a wider array of crypto ETF options, including for Litecoin, Dogecoin, Solana, and XRP.
Analysts view this change as a promising sign for the future of crypto ETFs. Though the applications still face a rigorous approval process, the SEC’s openness marks a more favorable stance than what we saw previously.
Countdown Begins for Approval Process
Once Grayscale’s filing appears in the Federal Register, the SEC’s formal review period will begin. This process can take up to 240 days, during which the SEC will thoroughly examine the proposal before making a final decision.
While this may seem like a long wait, it’s a critical step in bringing these crypto products to the public. If approved, the introduction of XRP and Dogecoin ETFs could offer a new way for investors to gain exposure to these assets without directly holding them.
Analysts See Optimism for Approval
Bloomberg ETF analyst James Seyffart highlighted the significance of this shift, pointing out that filings for cryptocurrencies like Solana were previously rejected. “It means there’s a chance,” he said, noting that the SEC’s recent stance signals openness to crypto innovation.
Seyffart has estimated the chances of approval for XRP and Dogecoin ETFs at 70% and 65%, respectively. He also sees a 90% likelihood of Litecoin’s approval and 70% for Solana. However, he pointed out that the ongoing Ripple lawsuit with the SEC could delay or complicate the approval for XRP’s ETF.
Despite hurdles, the recognition of these ETFs by the SEC is a landmark moment. As the crypto market matures, more players like Bitwise, Canary, and WisdomTree may apply for similar products. With each new application, the potential for broader adoption of cryptocurrency grows, and the SEC’s evolving position on crypto ETFs reflects the industry’s growing legitimacy.
The SEC’s acknowledgment of Grayscale’s filings could very well mark the beginning of a new chapter in crypto regulation—one that could open the door to more crypto ETFs and further integrate digital assets into the financial mainstream.
