The US Securities and Exchange Commission (SEC) has acknowledged Grayscale’s applications for spot Dogecoin (DOGE) and XRP exchange-traded funds (ETFs), according to two Feb. 13 filings by the financial regulator.
It is the beginning of an approval process.
These ETFs are designed to follow the performance of DOGE and/or XRP, giving investors direct access to these assets through conventional markets.
What is this?
The SEC’s recognition of these filings indicates a willingness to review and decide on the applications.
Bloomberg ETF analyst Eric Balchunas noted that the agency’s acknowledgment is a positive development. In the past, filings similar to those for altcoins were rejected immediately.
Eleanor Terrett, a Fox Business journalist, explained further that the SEC seems more open to considering crypto ETFs. The SEC is now more receptive to considering these crypto ETFs.
The acknowledgement of the ETFs is only the beginning in the lengthy process to approve them. However, the possibility grows that they could be available on the market.
In spite of this, there is still regulatory uncertainty. Bloomberg ETF analyst James Seyffart recently suggested that the approval of an XRP ETF may depend on the resolution of the SEC’s lawsuit against Ripple.
A court ruled in 2023 that XRP is not a securities for secondary sales. However, the SEC filed an appeal, increasing uncertainty.
Recent leadership changes have led to speculations about the Commission dropping the Binance case after its request for 60 days of suspension.
Hashdex adds ETF to its product offering
Hashdex, which has received SEC approval for its exchange-traded crypto index ETP (ETP), will debut on Nasdaq, on February 14, after the launch of this product.
Seyffart stated that initially, the index would include Bitcoin and Ethereum. However, it will expand to other assets as soon as regulatory approval is received. Future additions may include Cardano Avalanche Litecoin Chainlink Solana and Solana. This would mirror an existing Hashdex index in Brazil.
It shows the increasing acceptance of investment products based on cryptography in traditional financial markets.
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