XRP ETF? SEC Considers Initial Approval

XRP ETF? SEC Considering Approval First

31 July 2025 on 11: 42

Reading time: 2 minutes

Attention within the crypto world is increasingly focused on the possibility of approval for new exchange-traded funds (ETFs), with XRP currently appearing to be at the front of the queue. However, ETF expert Nate Geraci points out that the SEC may consider staking in spot Ethereum ETFs first before approving XRP.

On Tuesday, the SEC formally approved a 19b-4 filing from Nasdaq, which allows BlackRock's iShares Ethereum Trust to offer staking services. This is a significant development that significantly impacts the discussion about the future of crypto ETFs. Geraci, who has been closely monitoring these developments for months, considers this the last item on his checklist for November.

The Impact of Staking on Ethereum ETFs

Staking allows ETH holders to earn passive rewards by locking their tokens in Ethereum's proof-of-stake system. If ETF issuers can stake the underlying ETH in a fund, this creates a whole new layer of potential returns. This is something that traditional finance is finding increasingly difficult to ignore. Moreover, it brings Ethereum ETFs closer to the actual operation of the asset.

Meanwhile, the SEC has approved in-kind creation and redemption for both Bitcoin and Ethereum ETFs, creating another major structural shift. This means investors can now invest directly in BTC or ETH can be settled instead of in cash, which reduces trading costs and increases tax efficiency. These developments signal a shift in the SEC's focus: not so much expanding the ETF offerings, but refining the current structures.

The future of XRP in the ETF market

If Geraci is correct, staking could be the next big upgrade in the ETF market, and XRP would have to wait and see. This exposes an interesting dynamic: while investors and analysts eagerly await XRP’s approval, innovation and improvements in Ethereum offerings could influence the SEC’s strategic direction in the near future. It’s a complex game of timing and regulation that investors will want to keep a close eye on.

Frequently Asked Questions

What is staking and how does it work within Ethereum?
Staking is a process in which holders lock up their cryptocurrencies to contribute to the network and receive rewards in return. Ethereum, which has transitioned to proof-of-stake mode, allows users to stake their ETH to verify transactions and generate returns.

Why is the SEC currently focused on staking rather than new ETF approvals?
The SEC appears to be prioritizing refining existing ETF structures and maximizing their return potential. Adding staking to Ethereum ETFs could create a more attractive product, increasing efficiency and investor appeal.

What does this mean for the approval of XRP ETFs?
The focus on staking and existing Ethereum ETFs could mean that the approval of an XRP ETF remains further away. XRP investors should be aware of a potential delay while the SEC focuses on improving current market structures for Ethereum.

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