SEC Acknowledges Grayscale's Dogecoin & XRP ETF Filings
The US Securities and Exchange Commission (SEC) has acknowledged Grayscale’s 19b-4 filings for its proposed Dogecoin and XRP exchange-traded funds (ETFs). This significant development paves the way for a potential approval, injecting bullish sentiment into the markets and potentially influencing the prices of Dogecoin and XRP.
SEC Acknowledges Grayscale's ETF Filings
The SEC's acknowledgment, detailed in a recent release, initiates the formal review process. Public comments are now being solicited, marking the crucial first step toward approval or rejection. Grayscale filed these 19b-4 applications through the New York Stock Exchange (NYSE) to convert its existing Dogecoin and XRP Trusts into ETFs. They are not alone; other firms like Bitwise and REX Shares have also submitted Dogecoin ETF applications, while Bitwise, Canary Capital, 21Shares, and WisdomTree are vying for XRP ETF approval.
Bloomberg analysts Eric Balchunas and James Seyffart recently predicted a 75% chance of SEC approval for a Dogecoin ETF and a 65% chance for an XRP ETF in 2024.
What's Next for the ETFs?
Following the acknowledgment, the SEC will publish these filings in the Federal Register. A 240-day period will then commence, during which the SEC must decide whether to approve or deny these investment products. Analyst James Seyffart highlighted that while largely expected, this acknowledgment officially starts the clock. He noted that under the previous SEC leadership, such filings might not have even been acknowledged, suggesting a shift in approach.
The acknowledgment is particularly noteworthy given the SEC's previous skepticism towards altcoins, as highlighted by the rejection of Solana ETF filings under the prior administration. Both Balchunas and Seyffart view the SEC's action as positive, increasing the probability of approval. The impact of this potential ETF approval on the ongoing Ripple lawsuit is also significant. Legal expert Jeremy Hogan predicted the Ripple lawsuit would conclude before an XRP ETF is approved. Ripple CEO Brad Garlinghouse further reinforced this sentiment.
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