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SEC Acknowledges Dogecoin, XRP ETF Filings; Prices Surge

Coin WorldSunday, Feb 16, 2025 1:43 pm ET

1min read

The U.S. Securities and Exchange Commission (SEC) has acknowledged spot Exchange-Traded Fund (ETF) filings from Grayscale Investments and 21Shares for Dogecoin (DOGE) and XRP, respectively. This move has sparked a sharp price increase of over 10% for both cryptocurrencies on Friday.

The SEC's official publication of a regulatory notice seeking public comments on the proposed rule changes required to list Grayscale’s XRP and Dogecoin Trusts under NYSE Arca Rule 8.201-E marks the beginning of the formal review process. This process spans up to 240 days, during which the SEC must approve or reject the applications.

Grayscale's strategy for the Dogecoin ETF involves structuring it so that authorized participants handle cash transactions rather than directly holding DOGE, addressing potential regulatory concerns. Coinbase Custody has been designated as the custodian, while BNY Mellon will oversee administrative functions.

The SEC also recognized the XRP ETF application submitted by asset manager 21Shares on Friday. While these acknowledgments do not equate to approval, they represent a significant first step in the regulatory process.

Eleanor Terrett, a crypto-journalist at Fox Business, tweeted, "To be sure, there’s still a whole process to go through with all of these new crypto ETF filings (LTC, DOGE, SOL, XRP, etc.), but this is a good first step as it means there’s at least a chance these products could launch in the future."

Investor optimism has been fueled by the news, with Polymarket data showing that the odds of DOGE and XRP ETFs being approved have risen to 75% and 78%, respectively. Bloomberg ETF analyst James Seyffart estimated XRP's chances of securing ETF approval at 65%, while DOGE's odds stand at 75%.

Eric Balchunas, an analyst at Bloomberg, weighed in on the SEC's decision, stating, "DOGE ETF filing has been acknowledged by the SEC. This is part of the normal process, but it’s a good sign considering these altcoins were previously told to withdraw right after filing." He added that this acknowledgment slightly improves the likelihood of approval.

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