SEC Approves Grayscale's XRP, Dogecoin ETF Applications

The U.S. Securities and Exchange Commission (SEC) has formally accepted applications from Grayscale Investments for the creation of exchange-traded funds (ETFs) based on XRP and Dogecoin. The SEC's acknowledgment of these applications marks a significant step in the process of potentially bringing these digital assets to a broader range of investors through a more accessible and liquid investment vehicle.
Grayscale, a leading digital asset manager, has been actively pursuing the conversion of its existing trusts into ETFs, aiming to provide investors with exposure to various cryptocurrencies without the need for direct ownership. The SEC's review of these applications is a crucial step in determining the future of these ETFs and the wider acceptance of digital assets in the investment landscape.
The SEC has opened a 21-day public comment period for the proposed rule changes, allowing stakeholders to voice their opinions on the potential approval of these ETFs. After this period, the SEC will decide whether to approve, disapprove, or institute proceedings related to the applications. This process is a standard part of the SEC's review process for new investment products.
NYSE Arca, a leading exchange operator, has filed the necessary paperwork with the SEC to list and trade shares of the Grayscale XRP Trust and Grayscale Dogecoin Trust. The XRP Trust, as of January 22, 2025, managed $16.1 million in assets, while the Dogecoin Trust was launched more recently. Both proposed ETFs would allow investors to gain exposure to their respective digital assets through a more liquid and accessible investment vehicle.
Grayscale's expansion into ETF offerings includes plans to convert its trusts for XRP, Litecoin, and Solana into ETFs, as well as seeking approval for the launch of its Cardano Trust. This strategic move by Grayscale reflects the growing interest in digital assets and the potential for ETFs to provide a more mainstream investment option for a broader range of investors.
Dogecoin, the eighth-largest digital asset by market capitalization, was originally created as a playful alternative to Bitcoin and has since gained substantial support from prominent figures such as Elon Musk. XRP, the third-largest digital asset, has been the subject of ongoing debate regarding its classification, with Ripple currently engaged in a legal battle with the SEC over this issue.
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