SEC Begins Review of Grayscale's XRP and DOGE ETF Applications

The U.S. Securities and Exchange Commission (SEC) has acknowledged the filings for Grayscale's XRP and Dogecoin exchange-traded funds (ETFs). These filings aim to list and trade the respective assets under the rules governing commodity-based trust shares.

The SEC's acknowledgment marks a procedural milestone, yet it doesn't equate to an approval of the proposals. Instead, it initiates the stage of soliciting public comments. After considering public feedback, the SEC will decide on either approving or rejecting the proposed rule changes.

On January 30, 2025, NYSE Arca submitted a proposed rule change to the SEC to list and trade shares of the Grayscale XRP Trust. An amended version was filed on February 10, indicating revisions from the initial submission are now under review.

Nate Geraci, President of ETF Store, highlighted the significance of this acknowledgment. He expressed surprise at the lack of public discourse, stating, "Shocked more people aren’t talking about SEC accepting XRP ETF filing…They have open litigation w/ Ripple," via X (formerly known as Twitter).

The SEC recently removed its lawsuit from the “Litigation Releases” section, prompting speculation about a potential resolution. However, the case's movement to the "Court of Appeals" section confirms that legal proceedings continue.

Fox Business reporter Eleanor Terrett noted that acknowledgment is not equivalent to automatic approval but sees it as a favorable development. "Because it means this SEC is being more open-minded and not flat-out refusing to consider these products," she commented.

This acknowledgment represents a significant departure from past SEC policies. In December 2024, the SEC rejected several 19b‑4 filings for Solana (SOL) ETFs, though acknowledgment was later gained following Cboe's resubmission under President Trump’s administration.

James Seyffart, a Bloomberg ETF analyst, concurred. "Under the prior SEC they never would have even acknowledged. And they didn’t. Solana filings were functionally denied as recently as December. Basically, it means there’s a chance," he remarked with cautious optimism.

Following its publication in the Federal Register, Grayscale’s XRP ETF will enter a 240-day review window. The Cboe has also filed 19b-4 forms for spot XRP ETFs from four other asset managers.

Concurrent with XRP, the SEC acknowledged Grayscale’s DOGE ETF filing, which complements the recent launch of a Dogecoin Trust by Grayscale.

Eric Balchunas, Bloomberg's senior ETF analyst, commented, "Doge ETF filing has been acknowledged by SEC, is part of the normal process but that’s a good sign as these altcoins (which in the past have been told to withdrawal right after filing) bumps up slightly our (already pretty good) odds of approval."

Analysts previously suggested that Dogecoin might have a greater likelihood of approval compared to Solana or XRP, as the SEC may classify it as a commodity rather than a security—a classification that's impeded SOL and XRP ETF approvals.

In addition to Grayscale, Bitwise has submitted a filing for a DOGE ETF. Rex Shares is also seeking approval for multiple meme coin ETFs, including those based on Dogecoin, Bonk (BONK), and Official Trump (TRUMP).