SEC’s XRP ETF Review Clock Starts—Decision Could Land by October

Key Takeaways

• The SEC has acknowledged Grayscale’s application to list for an XRP ETF.
• Grayscale has also submitted proposals for Dogecoin, Solana, Litecoin, and ADA funds.
• The Commission has a final deadline of Oct. 12 to approve or deny the application.

The U.S. Securities and Exchange Commission (SEC) has officially acknowledged Grayscale’s application to list a spot XRP exchange-traded fund (ETF) on the New York Stock Exchange (NYSE).

The SEC’s acknowledgment kickstarts a 240-day countdown to the final deadline for a decision in mid-October.

Grayscale’s XRP ETF Proposal

NYSE initially filed the necessary paperwork for an XRP ETF, known as form 19b-4, on Jan. 30.

On Feb. 6, the Chicago Board Options Exchange (CBOE) filed similar proposals on behalf of Bitwise, Canary, WisdomTree, and 21Shares.

Processing the applications in order of filing, the SEC officially acknowledged the Grayscale application on Feb. 14.

Grayscale has also proposed forming ETFs to hold Solana, Litecoin, and Dogecoin.

The SEC acknowledged receiving 19b-4s for Solana and Litecoin ETFs earlier this month and acknowledged Grayscale’s  Dogecoin application on Friday.

Understanding the SEC’s ETF Review Process

Upon acknowledging a filing, the SEC publishes it in the Federal Register, triggering a 21-day public comment period where stakeholders can express support and concerns or provide additional information.

Following this, the SEC has 45 days to make an initial decision to approve, deny, or extend the review period.

The Commission can extend the review multiple times, with a maximum review period of 240 days from the Federal Register publication date.

Likelihood of Approval

There are different views on the likelihood of the various altcoin ETF applications currently being reviewed by the SEC.

Proposals for Litecoin and Dogecoin funds benefit from their technological similarity to Bitcoin. There is already a precedent for ETFs that hold BTC, and the SEC likely holds the view that Bitcoin forks like DOGE and LTC are commodities.

Of the four top contenders for the next crypto ETFs, Bloomberg analysts Eric Balchunas and  James Seyffart ranked XRP funds as the least likely to receive approval in 2025. Nevertheless, they still gave them a 65% chance of approval this year.

Implications for Ripple’s Legal Challenge

The SEC’s move to acknowledge XRP ETF applications has heightened speculation that the agency may drop its lawsuit against Ripple.

Under its previous leadership, the SEC appealed a court ruling that largely sided with the XRP developer.

However, in the Trump era, a far more pro-crypto Commission could abandon the appeal to signal a different position on the question of whether cryptocurrencies are securities.