SEC Reviews Grayscale’s XRP and Dogecoin ETF Proposals
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The U.S. Securities and Exchange Commission (SEC) has officially acknowledged Grayscale Investments’ applications to transform its XRP and Dogecoin Trusts into exchange-traded funds (ETFs).
This acknowledgment initiates the SEC’s formal review process, which could lead to significant developments in the cryptocurrency investment landscape.
Grayscale’s ETF Ambitions
Grayscale, a leading digital asset management firm, has proactively sought regulatory approval to convert its existing cryptocurrency trusts into ETFs.
On February 13, the SEC confirmed it received Grayscale’s applications to turn its XRP and Dogecoin Trusts into ETFs. This means the agency will soon begin reviewing them and must make a decision within 240 days.
https://twitter.com/ibcgroupio/status/1890172706655461853
The firm’s recent filings aim to provide investors with regulated and straightforward access to XRP and Dogecoin through these proposed Grayscale ETFs.
The 240-day countdown will start once the filings are added to the SEC’s federal register, usually in a few days. If this happens now, the final decision is expected by mid-October. This move is part of Grayscale’s broader strategy to integrate digital assets into traditional financial markets.
The SEC’s acknowledgment of these filings marks the beginning of a comprehensive review period. The agency has opened a 21-day public comment window, inviting feedback on the proposed rule changes to list and trade shares of the Grayscale XRP and Dogecoin ETFs.
Following this period, the SEC will evaluate the proposals and decide whether to approve or disapprove the applications.
Grayscale’s pursuit of ETF approvals is not new. The firm has previously filed applications to convert its Bitcoin and Ether Trusts into ETFs, reflecting its commitment to expanding regulated investment options in the crypto space.
Prospects of ETF Approval
Industry analysts are closely monitoring the SEC’s actions regarding these Grayscale ETFs.
Bloomberg ETF analyst James Seyffart noted that the SEC’s acknowledgment of these applications is a significant step, stating, “The SEC just acknowledged Grayscale & NYSE’s 19b-4 filing to list an XRP ETF.”
This development suggests a potential shift in the regulatory approach to crypto-based investment products.
The potential approval of Grayscale’s XRP and Dogecoin ETFs could have far-reaching effects on the cryptocurrency market. ETFs offer a regulated avenue for investors to gain exposure to digital assets, potentially leading to increased mainstream adoption.
However, it’s important to note that acknowledgment of the filings does not guarantee approval. The SEC will thoroughly assess the proposals before making a final decision.
The current review of the XRP and Dogecoin ETF applications comes amid a changing regulatory environment. Recent leadership changes at the SEC could potentially influence the agency’s stance on crypto-related products.
The SEC’s partial victory against Kraken reflects its broader push to regulate the crypto industry. With ongoing legal battles over whether cryptocurrencies should be treated as securities, the outcomes of these cases could impact future crypto ETFs’ decisions.
As the SEC reviews Grayscale’s XRP and Dogecoin ETF filings, its approach to enforcement may shape the future of crypto investment products in the U.S.
