Dogecoin (DOGE) and XRP skyrocketed over 10% after the U.S. Securities and Exchange Commission (SEC) acknowledged spot Exchange-Traded Fund (ETF) filings from Grayscale and 21Shares. This marks a crucial step toward potential approval.
SEC Opens the Door to Dogecoin and XRP ETFs
On Thursday, the SEC published a regulatory notice requesting public comments on proposed rule changes for listing Grayscale’s DOGE and XRP Trusts under NYSE Arca Rule 8.201-E. This kicks off a formal 240-day review process.
Grayscale’s DOGE ETF aims to address regulatory concerns by ensuring authorized participants handle cash transactions instead of directly holding DOGE. Coinbase Custody will serve as the custodian, with BNY Mellon managing administrative duties.
Meanwhile, the SEC also acknowledged 21Shares’ XRP ETF application. Though this doesn’t guarantee approval, it signals a shift in regulatory stance and increases the odds of eventual approval.
Market Optimism Soars
The news ignited bullish sentiment among investors. Polymarket data now places DOGE’s ETF approval odds at 75%, while XRP’s stand at 78%. Bloomberg ETF analyst James Seyffart gives XRP a 65% chance of approval and DOGE a slightly higher 75% probability.
Fox Business journalist Eleanor Terrett emphasized that while the approval process is still in its early stages, this development is a positive sign for altcoin ETFs, including Litecoin (LTC) and Solana (SOL).
SEC’s Changing Approach
Bloomberg’s Eric Balchunas noted that the SEC’s acknowledgment is part of the standard process. However, he highlighted that previous altcoin ETF filings were often rejected immediately. This shift follows the departure of former SEC Chair Gary Gensler, who resisted crypto ETFs beyond Bitcoin and Ethereum.
Under Gensler, the SEC rejected at least 20 spot Bitcoin ETF applications before finally approving them in January. The agency has also delayed decisions on ETH and SOL ETFs, with some deadlines extending into May 2025.
What’s Next?
With investor optimism at an all-time high, DOGE and XRP could see further price gains. If the SEC eventually approves these ETFs, mainstream adoption could accelerate, potentially sending prices even higher.
