"SEC Greenlights Grayscale's XRP, Dogecoin ETFs: 240-Day Review Begins"

The U.S. Securities and Exchange Commission (SEC) has formally acknowledged Grayscale's filings for spot XRP and Dogecoin Exchange-Traded Funds (ETFs), initiating a 240-day review period that could conclude with decisions by mid-October 2025. This acknowledgment signals a shift in the SEC's approach to crypto ETFs compared to its previous stance under Gary Gensler.

Grayscale, a prominent player in the cryptocurrency investment space, filed separate proposals on January 30 for the XRP Trust and January 31 for the Dogecoin Trust through NYSE Arca. The timing of these applications coincides with changes in SEC leadership, which appear to have brought a new perspective on cryptocurrency investments.

Four other investment firms – Bitwise, 21Shares, Canary Capital, and WisdomTree – have also submitted applications for XRP ETFs, showing growing interest in bringing XRP to traditional investment platforms. Bloomberg ETF analysts James Seyffart and Eric Balchunas estimate a 65% likelihood for XRP ETF approval and a 70% chance for Dogecoin ETF approval before the end of 2025.

The path to approval may differ between XRP and Dogecoin. XRP faces additional challenges due to ongoing legal matters between the SEC and Ripple Labs. While Ripple won a partial victory in August 2023 when a court ruled that XRP wasn't a security when sold on secondary markets, the SEC has appealed this decision. Dogecoin's approval process might be more straightforward, as it shares many features with Bitcoin, which already has SEC-approved ETF products, and the SEC hasn't classified Dogecoin as a security.

The review process will follow standard SEC procedures, with the agency taking up to 240 days to make its final decision after the applications are published in the Federal Register. During this time, the SEC will examine various aspects of the proposals, including market manipulation risks and investor protection measures. NYSE Arca's involvement adds weight to the applications, suggesting confidence in the products' market readiness.

The applications come during a time of increased acceptance of cryptocurrency investments, with the financial industry showing growing interest in offering crypto-related products to traditional investors through regulated channels. Other cryptocurrency ETF applications, such as those for Litecoin