SEC's Approval Timeline for an XRP Exchange-Traded Fund (ETF)
In a significant shift for the crypto market, the Securities and Exchange Commission (SEC) has announced that it will prioritize the approval of Ethereum staking ETFs over XRP ETFs. This decision, which could reshape the landscape of crypto exchange-traded funds (ETFs), delays XRP's prospects for approval in 2025 and introduces regulatory hurdles that may push XRP-related ETF launches further into the future.
The SEC's focus on Ethereum staking ETFs stems from the complex yield mechanisms these products offer, requiring more thorough evaluation. For instance, 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. This move positions Ethereum as the cornerstone of next-generation crypto ETFs.
Ethereum staking ETFs, such as BlackRock’s iShares Ethereum Trust enabling staking rewards, are favored because staking aligns with Ethereum’s evolving network consensus and offers benefits like passive income, tax efficiency, and lower trading costs. These factors fit the SEC's yield and market structure focus.
Meanwhile, XRP’s legal clarity following Ripple’s favorable lawsuit outcome has increased speculation about XRP ETF potential. However, actual XRP ETF approvals remain delayed due to the SEC's focus on staking-based Ethereum products and the SEC's intention to finalize ETF frameworks efficiently.
Analysts and ETF experts predict that staking approval for Ethereum ETFs will precede any new spot crypto ETFs including XRP. This means XRP ETF approvals will likely lag until the SEC addresses staking ETF reviews comprehensively.
The broader regulatory delay introduces uncertainty for XRP holders and ETF applicants. The SEC aims to avoid piecemeal and case-by-case ETF approvals by implementing consistent criteria potentially by October 2025. However, XRP ETFs remain behind Ethereum staking ETFs in the queue.
This strategic focus on Ethereum staking ETFs signifies a new phase in the maturity of the crypto ETF market, where performance and compliance must go hand in hand. The SEC's actions suggest that the next "game changer" could be the economy of ETH staking in ETFs rather than the XRP ETF.
As the SEC works towards streamlining and standardizing its approval framework for multiple crypto ETFs, including XRP ETFs, 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 legal status of XRP remains more nuanced than that of ETH from a regulatory perspective.
In conclusion, while XRP's regulatory position has improved, the SEC’s strategic focus on approving Ethereum staking ETFs first creates a significant delay and regulatory hurdle for XRP ETFs in 2025. XRP’s ETF prospects hinge on the SEC completing Ethereum staking ETF reviews and establishing clear, efficient frameworks before advancing other crypto ETFs like XRP.
[1] SEC Prioritizes Ethereum Staking ETFs Over XRP ETF Approval [2] Ethereum Staking ETFs Set to Precede XRP ETF Approval [3] XRP ETF Approval Delayed as SEC Focuses on Ethereum Staking ETFs [4] The Impact of Ethereum Staking ETFs on XRP ETF Prospects [5] The Evolution of Crypto ETFs: A Focus on Ethereum Staking ETFs and XRP ETFs
- Crypto Academy: The SEC's emphasis on Ethereum staking ETFs over XRP ETFs highlights the importance of understanding complex yield mechanisms in the world of crypto finance, particularly when it comes to evaluating investments in Ethereum-related products.
- Finance: Given the SEC's prioritization of Ethereum staking ETFs, long-term investors may find it advantageous to explore potential opportunities in this sector, as Ethereum staking ETFs offer benefits such as passive income, tax efficiency, and lower trading costs, making them a strong contender for the next "game changer" in the crypto market, according to analysts and ETF experts.
){kind=link}