In a significant development for the cryptocurrency industry, the U.S. Securities and Exchange Commission (SEC) has officially accepted the applications from Grayscale to list spot Exchange-Traded Funds (ETFs) for Ripple (XRP) and Dogecoin (DOGE). This move, announced on February 13, 2025, marks a pivotal moment for both digital assets, as the SEC now faces a 240-day window to review and decide on these applications.
A Closer Look at the Approval Process
The 240-day review period begins when Grayscale’s applications are officially filed with the SEC’s federal registry, which is expected soon. Should the SEC fail to make a decision within the timeframe, the deadline for final approval will extend into mid-October 2025. The SEC’s acceptance of these applications signals a shift in the agency's stance toward cryptocurrency ETFs, especially as similar applications for Litecoin (LTC) and Solana (SOL) ETFs were also approved recently.
This marks a change from the previous administration under Gary Gensler, during which the SEC rejected multiple Solana ETF proposals and delayed Grayscale’s Bitcoin Trust ETF conversion for years. Now, it seems the SEC is more open to incorporating crypto assets into traditional investment vehicles, reflecting the changing dynamics in the regulatory landscape.
Analysts Predict Favorable Outcomes for XRP and DOGE ETFs
According to prominent Bloomberg ETF analysts, James Seyffart and Eric Balchunas, the chances for approval for XRP and DOGE ETFs by 2025 are relatively optimistic. Seyffart predicts a 65% likelihood for XRP’s approval and 75% for Dogecoin’s. These figures are a positive indicator for crypto investors, especially considering the complex regulatory landscape surrounding digital assets. Litecoin’s ETF has an even higher chance of approval, with a 90% prediction by the end of 2025.
XRP’s legal battles with the SEC are still ongoing, with the agency appealing Ripple Labs’ partial victory in August 2023. However, despite the lawsuit, analysts remain hopeful that an XRP ETF could be approved before a final decision is made in court. Meanwhile, Dogecoin appears to face fewer obstacles in terms of SEC scrutiny, as the agency has yet to make a definitive statement about the token’s value.
What Does This Mean for Crypto Investors?
The potential approval of XRP and Dogecoin ETFs would be a major milestone for the broader cryptocurrency market, offering a new avenue for institutional investors to gain exposure to these assets without directly owning them. If successful, these ETFs could help boost liquidity, encourage more widespread adoption, and attract new investors into the crypto space.
As the review period progresses, both XRP and DOGE enthusiasts will be eagerly watching to see how the SEC responds. This could be a turning point that not only affects these particular tokens but also shapes the future of crypto ETFs in the United States.
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