Gary Gensler’s non-support leads to approval of Spot Ether ETFs – Unveiling the reasons behind his decision

The Securities and Exchange Commission (SEC) of the United States granted approval for spot Ether exchange-traded funds (ETFs) on May 23. However, the approval process for Ether differed slightly from that of Bitcoin ETFs approved in January.
While the spot Bitcoin (BTC) ETFs were approved through a voting process involving a five-member committee, including SEC chief Gary Gensler, the spot Ether (ETH) ETFs were approved by the Trading and Markets Division of the SEC.
The SEC approved the 19b-4 filings from various companies, including BlackRock, Fidelity, Grayscale, Bitwise, VanEck, Ark, Invesco Galaxy, and Franklin Templeton. However, the SEC declined to provide any additional comments beyond the official decision, as stated in the filing.
Although many members of the crypto community were curious about the differences in the approval process for the two crypto ETFs, Bloomberg ETF analyst James Seyffart stated that it was a normal occurrence. According to Seyffart, the approval process for many decisions is typically done in the same way, and requiring an official vote for each decision or document would be impractical. However, some individuals remain skeptical of Seyffart’s analysis. One user on X pointed out that a commissioner could challenge the decision within the next 10 days. They also suggested that the delegated authority was meant to conceal the votes, as they may be perceived as politically motivated.
Another X user attributed the SEC’s decision to various factors, including political pressure, upcoming elections, and the implementation of environmental, social, and governance rules.
Another significant difference between the approval processes of the two crypto ETFs is that all 11 BTC ETFs began trading the day after their approval, as they also received S-1 form clearance. On the other hand, it may take weeks or even months for spot Ether ETFs to debut on exchanges, as the ETF filers have yet to receive S-1 SEC registration.
In conclusion, the SEC’s approval of spot Ether ETFs marks a significant development in the crypto industry. However, the differences in the approval process compared to Bitcoin ETFs have raised questions and speculation within the community. The final outcome and timing of the spot Ether ETFs’ debut on exchanges remain uncertain, as they await further regulatory clearance.