Grayscale took a key step toward launching a Dogecoin exchange-traded fund (ETF) as the U.S. Securities and Exchange Commission (SEC) acknowledged its proposal.

The SEC has now opened the door for public comments, allowing submissions within 21 days of the proposal's publication in the Federal Register. This kicks off the regulatory review process, which could lead to approval, rejection, or further deliberation.

The proposal, submitted through a 19b-4 form by NYSE Arca on behalf of Grayscale, represents the second phase in the process of introducing a spot crypto ETF. The SEC's acknowledgment sets the stage for the Federal Register publication, which in turn commences the formal review period.

Grayscale's Dogecoin Trust, which was launched in late January, has positioned the cryptocurrency as more than a meme, highlighting its potential for financial inclusivity, activism, and as a practical payment method. Dogecoin, often associated with its Shiba Inu mascot and boosted by notable support from entrepreneur Elon Musk, currently ranks as the eighth largest cryptocurrency.

In a parallel development on Thursday, the SEC also acknowledged a 19b-4 filing from NYSE Arca for the Grayscale XRP Trust. These events come amidst a broader push from various firms seeking regulatory approval for crypto ETFs, ranging from Solana to Dogecoin.

The regulatory environment has seen a shift in attitude with the departure of former SEC Chair Gary Gensler last month, who had been critical of cryptocurrencies, often classifying them as securities.

The SEC's earlier decisions this year included the approval of spot Bitcoin ETFs in January 2024 and spot Ethereum ETFs later in the same year, signaling a growing acceptance of cryptocurrency-based investment products within regulated market frameworks.