SEC's Approval Timeline for XRP Exchange-Traded Funds
The Securities and Exchange Commission (SEC) is giving priority to Ethereum staking in Exchange-Traded Funds (ETFs) over potential XRP ETFs, indicating a shift towards regulatory approval for Ethereum-related crypto ETFs, particularly those involving staking.
In a significant move, the SEC has approved the issuance and redemption procedures in kind ("in-kind") for Bitcoin and Ethereum ETFs. This evolution allows issuers to trade directly in BTC or ETH, improving fiscal efficiency and reducing transaction fees. The approval paves the way for staking proposals for Ethereum ETFs, as demonstrated by filings from Nasdaq, 21Shares, and Grayscale.
Industry experts, such as Nate Geraci, a notable ETF expert, have indicated that Ethereum ETF staking is the "next" expected regulatory step, potentially preceding approvals for additional spot crypto ETFs, including XRP. If approved, this would be a first in traditional finance, opening the door to yield tokenization via staking in Proof-of-Stake within a regulated ETF framework.
However, the regulatory status of XRP remains more nuanced than that of ETH. While the approval odds for XRP spot ETFs are rising, they are still pending, with a potential decision by October 2025. The SEC's focus on Ethereum staking ETFs suggests that these products are closer to receiving regulatory approval, while XRP ETFs are still awaiting regulatory clarity.
The SEC's priority is optimizing the existing rather than multiplying products. This strategic positioning fits into a logic of maturing the existing framework rather than expanding the number of listed spot ETF products. The development of an XRP ETF may have to wait for a full legal cleanup of the Ripple ecosystem or the opening of staking to other blockchains.
The SEC's approval of in-kind conversions could represent an opportunity for professional investors to revisit their ETH exposure through integrated yield products, once approved in Europe. On 30 July 2025, the SEC officially recognized Nasdaq's 19b-4 filing, linked to BlackRock's request to integrate staking services into its Ethereum iShares ETF.
In summary, the SEC's prioritization of Ethereum staking ETFs reflects regulatory focus on expanding yield-bearing crypto investment products with clearer compliance frameworks while maintaining cautious scrutiny over XRP’s distinct legal and regulatory circumstances.
| Aspect | Ethereum Staking ETFs | XRP ETF | |-------------------------|---------------------------------------------------------|--------------------------------------------| | Regulatory Status | Nearing approval, with expected decision by Q4 2025 | Awaiting regulatory clarity; growing approval odds by Oct 2025 | | SEC Actions | Approved in-kind transactions, considering staking applications | No final approval yet; still under review | | Industry Expert View | Ethereum staking ETFs likely next step | XRP ETF approval expected but later | | Impact | Could introduce first regulated yield-bearing Ether ETF, reshape U.S. Ethereum ETF market | XRP remains in limbo, delaying market access |
Sources: 1. CoinDesk 2. ETF Trends 3. Bloomberg 4. SEC Filing
Crypto Academy: In light of the SEC's regulatory focus, understanding the potential of Ethereum staking ETFs is crucial for investors looking to grasp the emerging landscape of regulated yield-bearing crypto investment products.
Finance and Technology: The SEC's priority of Ethereum staking ETFs over potential XRP ETFs highlights the technological advancements and financial potential in Proof-of-Stake networks like Ethereum, paving the way for innovative yield tokenization within a regulated framework.
