SEC Moves Towards Approval of XRP and Dogecoin ETFs
Recently, the U.S. Securities and Exchange Commission (SEC) has shown an increasingly open stance towards cryptocurrency ETFs, generating high expectations in the market. Notably, on February 13, the SEC officially accepted Grayscale’s application to convert its XRP and Dogecoin trusts into ETFs, signaling significant changes. This suggests that the regulatory environment for the cryptocurrency market is becoming more favorable.
Changed Position of the SEC
Not long ago, the SEC maintained a conservative attitude towards cryptocurrency ETFs, with very few approvals. However, it has shown a gradual shift toward openness by accepting spot Solana ETF applications from Canary, VanEck, and 21Shares, and requesting public comments on these proposals.
Once Grayscale's XRP ETF application is published in the Federal Register, the SEC will undergo a formal review period that can last up to 240 days. This represents an important stage in the ETF approval process, coinciding with rising investor expectations.
Rising Expectations in the Cryptocurrency Market
The SEC's recent decision is expected to positively impact the entire cryptocurrency market. In the past, many cryptocurrency ETF applications were withdrawn or rejected, but the recent developments indicate that regulatory agencies are increasingly willing to embrace the cryptocurrency industry.
Notably, whether the SEC grants approval plays a crucial role in enhancing liquidity in the cryptocurrency market and increasing participation from institutional investors. Currently, applications for ETFs are also underway for cryptocurrencies such as Litecoin ($LTC) and Solana ($SOL), which are awaiting SEC approval along with XRP and Dogecoin.
What are the Chances of Approval?
Bloomberg ETF analyst James Seyffart recently analyzed the SEC's changed attitude and its implications for ETF approvals in the cryptocurrency sector. He predicts a 70% chance of approval for the XRP ETF and a 65% chance for the Dogecoin ETF, while estimating a 90% approval likelihood for the Litecoin ETF and a 70% chance for the Solana ETF.
However, the ongoing lawsuit between Ripple and the SEC may still pose a variable for the XRP ETF. Some analyses suggest that without resolution of the lawsuit, it may be difficult to expect full approval and launch of the XRP ETF.
What Does the Future Hold for the Cryptocurrency Market?
The SEC's gradual changes are expected to have a positive effect on the cryptocurrency market. As institutional investor interest grows and ETF approvals follow, cryptocurrencies are likely to establish themselves as more stable investment assets. Nonetheless, the final decision from the SEC still awaits, and volatility may persist depending on legal issues and market conditions.
It is crucial to closely monitor the SEC’s official announcements and market reactions moving forward. If cryptocurrency ETFs are officially approved, the market could evolve into a more mature investment environment.
- This text does not constitute investment advice or financial recommendations.Cryptocurrency investment involves high risks, and the responsibility for investment decisions rests solely with the investor.
