XRP Skyrockets to $157 Billion as SEC Acknowledges ETF Filings – Are Altcoin ETFs Finally Coming?

The U.S. Securities and Exchange Commission (SEC) has officially acknowledged Grayscale’s filings for XRP and Dogecoin exchange-traded funds (ETFs), a move that signals a potential shift in regulatory sentiment toward altcoins. While this acknowledgment doesn’t equate to approval, it marks a notable departure from previous SEC actions under former Chair Gary Gensler, where similar filings were often dismissed outright.

A Subtle but Significant Shift

Industry analysts see this as a bullish indicator for altcoin ETFs. Bloomberg Intelligence analyst Eric Balchunas noted that this development marginally increases the odds of approval, particularly given past instances where altcoin ETF filings were swiftly withdrawn after submission.

“This is a good sign,” Balchunas stated on X. “In the past, these altcoins were told to withdraw right after filing. Now, with this acknowledgment, our already optimistic odds of approval have slightly improved.”

The change in regulatory tone comes on the heels of Donald Trump’s election win, during which he vowed to relax crypto-related regulations. Market participants are closely watching how his administration’s policies will shape the crypto landscape.

XRP Price Surge and Market Reaction

Following the SEC’s acknowledgment, XRP’s market capitalization soared to $157.8 billion, reflecting a 12% increase in just 24 hours. This price action signals strong investor confidence in the possibility of an XRP ETF approval, despite the uncertainty surrounding the timeline.

How Likely Are Altcoin ETFs?

The SEC has been inundated with ETF applications for altcoins such as XRP, Solana, Dogecoin, and Litecoin this year. Analysts believe some stand a better chance than others:

• Litecoin (LTC): Bloomberg analysts Balchunas and James Seyffart give Litecoin a 90% chance of ETF approval, citing its classification as a commodity and similarity to Bitcoin. Prediction market Polymarket similarly estimates an 87% likelihood of approval in 2025.
• Dogecoin (DOGE): Analysts estimate a 75% likelihood, with Polymarket putting the odds at 71%.
• Solana (SOL): Bloomberg analysts assign a 70% chance, while Polymarket predicts an 82% likelihood of approval this year.
• XRP: Perhaps the most closely watched altcoin in this space, XRP is given a 65% chance of ETF approval by Bloomberg analysts, while Polymarket bets reflect an 81% chance for 2025.

Balchunas described Litecoin as having “all the boxes checked” for a potential SEC greenlight, largely due to its strong similarity to Bitcoin and absence of security-related concerns.

BitGalactic’s Take: Is This the Next Big Institutional Push?

From BitGalactic’s perspective, the ETF race isn’t just about technicalities—it’s about institutional appetite. Institutional investors have been gradually increasing exposure to Bitcoin through ETFs, and the logical next step is diversification into altcoins.

However, a key concern remains: Will regulatory clarity extend beyond Bitcoin and Ethereum? SEC Chair Gary Gensler has previously categorized most altcoins as securities, creating a regulatory bottleneck for ETF approval. If Trump’s administration pushes for more crypto-friendly policies, we could see a broader acceptance of altcoin ETFs, unlocking billions in institutional capital.

BitGalactic analysts believe the SEC’s acknowledgment of XRP and Dogecoin is a strong signal that regulatory sentiment is shifting. If even one of these ETFs is approved, it could open the floodgates for others, much like what happened with Bitcoin spot ETFs.

Final Thoughts: Cautious Optimism for the Future of Altcoin ETFs

While the SEC has not yet approved any altcoin ETFs, the latest developments suggest that the path to approval is becoming more plausible. Investors should remain cautiously optimistic, keeping an eye on regulatory shifts and institutional behavior.

For now, the crypto market awaits the next move from the SEC. Will this acknowledgment turn into full-fledged approval, or will the regulatory hurdles prove too high? One thing is certain—2025 is shaping up to be a pivotal year for crypto ETFs.