SEC Finally Notices XRP and Dogecoin ETFs Exist. What Happens Next Will Shock You!

by

In a move that surprised absolutely no one who’s been paying attention (and a few who haven’t), the United States Securities and Exchange Commission (SEC) has officially acknowledged Grayscale’s application for spot XRP and Dogecoin exchange-traded funds (ETFs). 🎉

This acknowledgment, while not quite as exciting as discovering a new species of space whale, marks the beginning of the SEC’s formal review process. It’s like the first step in a bureaucratic marathon where the finish line is a mirage, and the water stations are filled with legal jargon. But hey, it’s progress! 🏃‍♂️

A Shift in Regulatory Approach, or Just a Coincidence?

Ripple CEO Brad Garlinghouse, who has been predicting an XRP ETF for what feels like eons, finally got to say, “I told you so.” 🎤 He pointed out that while many people initially thought he was just blowing hot air, his prediction is now starting to materialize. Who knew?

Under the previous administration, the SEC was about as receptive to ETF proposals as a cat is to a bath. 🐱 Many asset managers gave up and went home, tails between their legs. But now, with a pro-crypto president back in the White House, things might be looking up. Or maybe the SEC just got tired of being the bad guy. 🤷‍♂️

🚨SO, for everyone asking what this means — the SEC has *acknowledged* @Grayscale/@NYSE’s 19b-4 application to convert its $XRP Trust into an ETF.

No, it doesn’t mean automatic approval and it doesn’t even guarantee the SEC will approve it down the line.

So why is it notable?…

— Eleanor Terrett (@EleanorTerrett) February 13, 2025

Grayscale, the David to the SEC’s Goliath, had to fight tooth and nail in court to get its Bitcoin Trust converted into an ETF. Now, with the SEC acknowledging its XRP and Dogecoin filings, it seems the regulatory winds might be shifting. Or maybe the SEC just needed a new hobby. 🎨

The SEC Review Process: A Comedy of Errors

As part of its review, the SEC has opened a 21-day public comment period. This is your chance to share your thoughts on the proposed ETFs, assuming you can navigate the labyrinthine process without losing your sanity. 🧠 Once the comment period ends, the agency will decide whether to approve or deny the applications. Spoiler alert: it’s probably going to take a while. ⏳

The push for additional digital asset ETFs follows the SEC’s landmark approval of spot Bitcoin and Ethereum ETFs in January 2023. That decision set a precedent, leading firms like Grayscale and Bitwise to submit ETF proposals for XRP and Dogecoin. Meanwhile, Canadian asset manager Purpose Investments is also throwing its hat into the ring, seeking approval for an XRP ETF. 🎩

Legal Uncertainty and Market Expectations: The Plot Thickens

Grayscale’s XRP ETF application comes at a time when the SEC is still locked in a legal battle with Ripple over whether XRP should be classified as a security. 🥊 In January 2025, the SEC challenged a July 2023 court ruling that partially dismissed claims against Ripple, arguing that non-cash XRP distributions should fall under securities regulations. It’s like a soap opera, but with more lawyers and fewer dramatic pauses. 📜

Despite the ongoing litigation, Bloomberg ETF analysts James Seyffart and Eric Balchunas estimate that Dogecoin has a 75% chance of ETF approval, while XRP stands at around 65%. Both decisions are expected by the end of 2025. So, mark your calendars and stock up on popcorn. 🍿

Market experts suggest that XRP’s approval process could face more regulatory resistance due to its ongoing legal scrutiny. By contrast, Dogecoin is expected to have a smoother path to approval, as it has not been classified as a security and shares similarities with Bitcoin, which has already secured ETF approval. 🐕

Read More

2025-02-14 14:26