The U.S. Securities and Exchange Commission (SEC) has officially acknowledged Grayscale’s 19b-4 filings for its Dogecoin and XRP exchange-traded funds (ETFs), signaling the start of a process that could eventually lead to the approval of these funds. This development has sparked positive sentiment in the cryptocurrency community, with analysts speculating that the recognition could be a precursor to the funds’ approval.
Grayscale’s filings, submitted through the New York Stock Exchange (NYSE), seek to convert its existing Dogecoin and XRP Trusts into fully-fledged ETFs. The SEC’s acknowledgment means that these filings will soon be published in the federal register, marking the beginning of a 240-day period in which the Commission must make its decision on whether to approve or reject these funds.
The news comes amid growing interest in cryptocurrency ETFs, as other asset managers—including Bitwise, REX Shares, Canary Capital, 21Shares, and WisdomTree—have also filed proposals for Dogecoin and XRP ETFs. Industry analysts have been closely watching these developments, and earlier this week, Bloomberg analysts Eric Balchunas and James Seyffart predicted a 75% and 65% chance of approval for the Dogecoin and XRP ETFs, respectively, by the end of this year.
Next Steps and Market Implications
Once the filings are officially published, the SEC will begin the 240-day clock to evaluate the proposed ETFs. The acknowledgment by the SEC is seen as a positive indicator, particularly given that previous commissions had been much more cautious about approving similar products for alternative cryptocurrencies like Dogecoin and XRP.
Notably, this is a sharp contrast to past SEC decisions, such as its rejection of Solana filings under former chair Gary Gensler’s leadership. The acknowledgment of the Dogecoin and XRP ETFs suggests that the current SEC may be more open to approving such products, according to Balchunas, who noted that this marks a significant shift from prior skepticism towards altcoins.
In addition to the market optimism, the acknowledgment has legal implications for Ripple, the company behind XRP. Legal experts have pointed out that the SEC’s recognition of the XRP ETF could influence the outcome of the ongoing lawsuit between Ripple and the SEC. Nate Geraci, president of the ETF Store, noted that the SEC’s actions could serve as a pivotal statement in the case.
Ripple CEO Brad Garlinghouse also weighed in on the development, expressing confidence that the approval of these ETFs was always inevitable. In an X post, he highlighted the growing momentum behind cryptocurrency ETFs and their eventual approval.
As the SEC’s decision-making process begins, all eyes will remain on the future of these cryptocurrency ETFs, with the potential for broader market implications depending on the outcome.
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