The cryptocurrency market is buzzing with anticipation as Dogecoin (DOGE) and XRP Exchange-Traded Funds (ETFs) under the 33 Act appear to be on the cusp of receiving approval from the U.S. Securities and Exchange Commission (SEC). This potential breakthrough is largely attributed to a new regulatory framework introduced by the SEC, which aims to streamline the approval process for such financial products. Industry observers and insiders suggest that final amendments from fund issuers are expected within the current week, marking a significant stride towards the long-awaited regulatory nod.
Generic Standards Pave the Way for Crypto ETFs
The prospect of Dogecoin and XRP ETFs gaining approval is primarily bolstered by the SEC's recently proposed generic listing standards. These standards are designed to provide a clearer pathway for various crypto-backed investment vehicles. According to a Reuters report, which cited three individuals familiar with the ongoing discussions, a final round of amendments to these ETF applications is imminent. Teddy Fusaro, President of Bitwise, a prominent asset management firm, confirmed that applications for Dogecoin and XRP ETFs, including those filed by Bitwise, are already well into the review process. He emphasized that the industry had been eagerly awaiting these generic listing standards, which are now poised to facilitate accelerated approvals.
Market analysts, such as Bloomberg's James Seyffart and Eric Balchunas, have consistently highlighted that the submission of amendments typically signals a positive progression towards potential SEC approval, even though these updates are generally anticipated during the review cycle. Fusaro's comments further suggest that the amendments for Dogecoin and XRP ETFs are likely structured to align with these new generic listing standards. This strategic alignment is crucial, as Seyffart had previously expressed uncertainty regarding the implications of the new SEC rule for existing 33 Act filings. However, by seeking approval under these updated guidelines, issuers could expedite the launch of their funds, especially since cryptocurrencies like Dogecoin and XRP are believed to meet the predefined requirements for such listings.
October 18: A Critical Date for Grayscale and Beyond
Irrespective of the immediate filings, the broader expectation is that Dogecoin and XRP ETFs could secure SEC approval by mid-October. This timeline is largely anchored to the final deadline for Grayscale's Dogecoin and XRP filings, which is scheduled for October 18. There is considerable speculation that the SEC might opt for simultaneous approval of these funds, mirroring its approach with the successful launches of Bitcoin and Ethereum ETFs earlier this year. Such a move would be a powerful signal of regulatory clarity and acceptance for a wider range of digital assets.
Following Grayscale's pivotal October 18 deadline, the final review periods for other pending ETF applications, with the exception of Franklin Templeton's, are slated to occur in rapid succession. Notably, the final decisions for Dogecoin ETFs from Bitwise and 21Shares are not expected until November. The 21Shares DOGE ETF recently achieved a significant milestone by being listed on the Depository Trust & Clearing Corporation (DTCC), a development that has fueled optimism within the crypto community regarding its imminent launch.
Current Landscape: XRP and DOGE Exposure Funds
It is essential to acknowledge that while dedicated spot Dogecoin and XRP ETFs under the 33 Act are still pending, some investment products already offer exposure to these cryptocurrencies through different regulatory frameworks. Hashdex, for instance, recently obtained SEC approval to broaden its crypto index, moving beyond just Bitcoin and Ethereum to include XRP, Solana (SOL), and Stellar (XLM) under the generic listing standards. This expansion makes Hashdex's offering one of two multi-asset funds that provide spot exposure to XRP. Similarly, Grayscale debuted its CoinDesk Crypto 5 ETF last week, which also incorporates spot XRP, thereby providing investors with an avenue to gain exposure to the altcoin within a diversified portfolio.
Furthermore, REX-Osprey launched the initial Dogecoin and XRP ETFs just last week. However, these particular funds operate under the 40 Act, not the 33 Act, a distinction that carries significant implications. As highlighted by analyst James Seyffart, these 40 Act funds are not considered "pure" spot ETFs, as they do not maintain a 100% direct holding of the underlying digital asset. This distinction underscores the market's demand for true spot ETFs, which offer direct exposure and potentially different tax implications and investment profiles. The upcoming SEC decisions on 33 Act Dogecoin and XRP ETFs are therefore highly anticipated, as they represent a deeper integration of these digital assets into traditional financial markets.
