SEC cautious on XRP and Dogecoin ETFs from Grayscale, 21Shares
XRP and DOGE ETFs face delay
The U.S. Securities and Exchange Commission (SEC) has extended its review period for several applications to launch altcoin-based exchange-traded funds (ETFs), postponing decisions on spot XRP and Dogecoin ETFs submitted by 21Shares and Grayscale Investments.
This move underscores the SEC’s cautious approach to new digital asset investment products, especially amid growing interest in altcoin ETFs, CoinGape reports.
Details of the applications and ETF structure
The SEC was initially expected to announce its decisions by May 21–22. However, the agency stated it needs additional time to assess whether the proposed ETFs comply with Section 6(b)(5) of the Exchange Act, which is designed to prevent fraud and protect investors. The review affects not only the 21Shares Core XRP Trust and Grayscale’s Dogecoin Trust, but also Grayscale’s XRP Trust, which tracks the CoinDesk XRP Price Index.
The 21Shares XRP ETF, filed in March, is designed to follow the CME CF XRP-Dollar Reference Rate and plans to use Coinbase Custody for asset storage. Grayscale’s Dogecoin ETF would track the CoinDesk Dogecoin Price Index. Each of these ETFs would issue shares in blocks of 10,000 and hold only the respective digital asset.
Analyst commentary and SEC procedure
While delays may frustrate some investors, analysts stress that such extensions are standard procedure. Bloomberg ETF analyst James Seyffart noted that procedural delays are typical and not indicative of a rejection. He added that the most likely window for potential approval could be late June or early July, although final decisions may be pushed further into the year.
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Public comments on the filings are open for 21 days following publication in the Federal Register, with rebuttals accepted within 35 days.
Market reaction and approval outlook
Despite regulatory delays, investor sentiment remains optimistic. According to recent trading data, XRP and Dogecoin have shown modest gains. CoinGecko reports that XRP fell 0.6% to $2.36, while Dogecoin has increased by 2.71% to $0.2295.
History suggests that delays do not necessarily indicate denials. Bitcoin and Ethereum ETFs also faced multiple postponements before finally receiving approval. While no altcoin ETF has been approved by the SEC so far, confidence is growing. Betting platform Polymarket currently estimates an 83% probability that an XRP ETF will be approved before the end of 2025.
Previously, the SEC also delayed decisions on four proposed Solana ETFs, including high-profile applications from Bitwise, 21Shares, VanEck, and Canary.
