Grayscale Submits XRP and Dogecoin ETF Proposals to SEC, Eyes Institutional Crypto Access

Grayscale Investments has entered SEC review for proposed XRP and Dogecoin ETFs, leveraging Coinbase Custody and BNY Mellon to navigate regulatory hurdles and expand institutional crypto exposure.

Grayscale aims to launch the first U.S. ETFs tracking XRP and Dogecoin, submitting revised frameworks to address SEC concerns over volatility and custody risks.

Grayscale's Bold Move into Meme and Payment Crypto ETFs

Grayscale Investments formally filed updated proposals with the U.S. Securities and Exchange Commission (SEC) on Thursday for XRP and Dogecoin exchange-traded funds, according to documents reviewed by Reuters. The digital asset manager confirmed its filings leverage surveillance-sharing agreements with Coinbase Custody and banking infrastructure from BNY Mellon to mitigate market manipulation risks - a key SEC concern.

Strategic Partnerships with Custodial Giants

Coinbase Custody will serve as primary custodian for both proposed ETFs, with BNY Mellon handling cash settlements and administrative functions. Grayscale CEO Michael Sonnenshein stated in a press release that the dual-custody model 'sets a new institutional standard for digital asset vehicles.' The structure mirrors Grayscale's existing Bitcoin Trust, which holds $18.6 billion in assets under management.

Regulatory Hurdles and Timeline Expectations

SEC officials have 240 days to approve or deny the proposals under standard review procedures. Legal experts note the regulator faces renewed pressure following January's court-mandated approval of spot Bitcoin ETFs. Former SEC enforcement attorney Lisa Braganca told Reuters: 'The Commission must demonstrate consistent application of its standards - either demanding stricter controls for these products or justifying previous rejections.'

Market Reactions and Expert Insights

XRP prices surged 8% following the news, while Dogecoin gained 12% before paring gains. Bloomberg Intelligence ETF analyst James Seyffart cautioned: 'These filings face tougher scrutiny than Bitcoin ETFs due to Dogecoin's meme status and XRP's ongoing legal battles with the SEC.' Ripple Labs continues defending against SEC allegations that XRP constitutes an unregistered security in a case scheduled for trial in April 2024.

Institutional Demand Metrics

Grayscale's filings cite growing CME futures volumes for both cryptocurrencies as evidence of mature markets. XRP derivatives saw $1.2 billion in Q1 2024 transactions, while Dogecoin futures reached $780 million - increases of 140% and 90% year-over-year respectively. The proposals include circuit breakers pausing trading during 10% price swings within 5 minutes.

The Road Ahead for Crypto ETFs

Approval would make XRP and Dogecoin the first non-Bitcoin cryptocurrencies with U.S. spot ETFs, potentially reshaping the $2.1 trillion digital asset market. SEC Chair Gary Gensler has repeatedly warned about crypto's 'Wild West' nature, but the agency's loss in the Grayscale Bitcoin ETF case established precedent for fair treatment of similar products. Final decisions are expected by Q4 2024.

https://redrobot.online/2025/04/grayscale-submits-xrp-and-dogecoin-etf-proposals-to-sec-eyes-institutional-crypto-access/