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More cryptocurrencies may soon follow Bitcoin (BTC) and Ethereum (ETH) in receiving their spot exchange-traded funds (ETFs), as SEC reveals new updates on crypto ETF filings.
According to Fox Business correspondent Eleanor Terrett, the U.S. Securities and Exchange Commission (SEC) acknowledged Grayscale’s NYSE 19b-4 application for a DOGE ETF. The SEC also acknowledged Grayscale’s 19b-4 application to convert its XRP Trust into an ETF. In the past week, the regulator officially acknowledged the 19b-4 filing from Canary Capital for a spot Litecoin ETF, making it the first of its sort outside of Bitcoin and Ethereum.
In a separate tweet, Terett explains the implication of this move. While this does not imply automatic approval, nor does it guarantee the SEC will approve the ETF in the future, the acknowledgment remains significant, according to the Fox Business correspondent.
Tomiwabold OlajideIt could imply that the SEC is being more open-minded and not outright refusing to consider these products. Exchanges withdrew the SOL 19b-4 applications in December after the SEC, led by former chair Gary Gensler, indicated that it would not engage with them.
Terrett added that there is still a whole process to go through with the new crypto ETF filings, including Dogecoin's, but this is a good first step as it indicates that there is at least a chance these products could launch in the future. The 240-day window for Grayscale’s approval starts when it gets posted to the federal register, which should be a couple of days from now.
DOGE price reacts
At the time of writing, Dogecoin was up 4% in the last 24 hours, trading at $0.267, reflecting growing optimism among traders. The dog coin has also reversed weekly losses, up nearly 7% in the last seven days.
According to Bloomberg ETF analyst James Seyffart, the chances of a Litecoin (LTC) exchange-traded fund (ETF) being live in future months surged to over 90%, with Dogecoin (DOGE) following with a 75% probability.
Seyffart made similar predictions for Bitcoin (BTC) ETFs before the products went online in 2024. A changing regulatory atmosphere has boosted approval chances, with the SEC already passing preliminary tests on certain tokens in recent weeks.
As the 240-day decision clock starts ticking for a potential Dogecoin ETF, the crypto community is keeping its fingers crossed about what comes next.
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