SEC to decide on Grayscale's XRP and Dogecoin ETF proposals
The Securities and Exchange Commission (SEC) is poised to make a decision on Grayscale's filings for spot XRP (CRYPTO:XRP) and Dogecoin (CRYPTO:DOGE) exchange-traded funds (ETFs).
The agency's acknowledgment of the filings initiates a review process with a deadline set for mid-October.
Grayscale's applications for the Grayscale XRP Trust and the Grayscale Dogecoin Trust are now under consideration.
The SEC's decision will come within a mandated 240-day period, which commences upon the filings' submission to the SEC's federal register.
Bloomberg ETF analysts James Seyffart and Eric Balchunas have offered predictions regarding the likelihood of approval.
"XRP and Dogecoin ETF bids have a 65% and 75% chance of being approved before the end of 2025," according to their estimates.
They also give a 90% chance of a Litecoin (CRYOTI:LTC) ETF being approved within the same timeframe.
The SEC's review encompasses several factors.
The status of XRP as a security remains a key point of contention, particularly due to the ongoing lawsuit between the SEC and Ripple Labs.
"An XRP ETF wouldn’t be approved until the SEC’s lawsuit against Ripple Labs is fully resolved," Seyffart suggests.
The lawsuit centers on claims that Ripple breached securities laws through XRP sales to retail investors, despite a partial victory for Ripple in August 2023, where XRP was deemed not a security when sold on secondary markets.
Dogecoin's pathway to potential approval appears more straightforward.
The cryptocurrency shares characteristics with Bitcoin (CRYPTO:BTC), for which the SEC has already approved ETF products.
Over the past weeks, the SEC has also acknowledged applications for Litecoin and Solana (CRYPTO:SOL) ETFs.
The SEC's approach to crypto-related listings suggests a possible change in tact.
The SEC has opened a public comment period for the applications submitted through NYSE Arca.
Subsequently, the agency will decide whether to approve, disapprove, or institute further proceedings.
At the time of reporting, the XRP (XRP) price was $2.56, and the Dogecoin (DOGE) price was $0.2621.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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