The crypto market eagerly awaits the subsequent primary ETF approval, with many expecting XRP to lead the charge. However, ETF analyst Nate Geraci suggests that the U.S. Securities and Exchange Commission (SEC) may prioritize staking within spot Ethereum ETFs before approving any XRP ETF.
SEC Moves on Ethereum Staking Proposal
On Tuesday, the SEC formally acknowledged Nasdaq’s 19b-4 filing, which seeks to allow BlackRock’s iShares Ethereum Trust to offer staking services. This development shifts the current ETF conversation. Geraci, who has closely monitored ETF progress, noted that this was the last item on his November checklist.
He predicted that the SEC could act “sooner rather than later,” potentially approving staking before introducing any new spot crypto ETFs, including XRP. Staking lets ETH holders earn passive rewards by locking their tokens into Ethereum’s proof-of-stake system.
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If ETF issuers gain approval to stake the underlying ETH within their funds, this could introduce a new layer of yield potential. Traditional finance investors, who constantly seek additional returns, would likely find this feature highly attractive. Furthermore, enabling staking would align Ethereum ETFs more closely with how ETH operates in its native ecosystem.
Recent SEC Structural Changes in Crypto ETFs
Recently, the SEC approved in-kind creation and redemption for both Bitcoin and Ethereum ETFs. This change allows investors to settle transactions directly in BTC or ETH rather than cash. As a result, trading costs decrease, and tax efficiency improves. These structural adjustments indicate that the SEC currently focuses more on refining existing crypto ETFs than rushing to expand the lineup with new products.
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Given these developments, XRP’s path to an ETF appears delayed. If Geraci’s assessment holds, the SEC could first roll out staking features for Ethereum ETFs, marking a significant upgrade to existing offerings. Only after this enhancement might the regulator shift its attention toward approving new ETFs, meaning XRP could remain on hold for now.
