Gary Gensler, the Chair of the United States Securities and Exchange Commission (SEC), has implied that there could be a delay in final approvals for asset managers looking to offer spot Ether (ETH) exchange-traded funds (ETFs) on exchanges.
During an interview on CNBC on June 5, Gensler mentioned that the SEC’s approval process for spot Ether (ETH) ETFs would “take some time,” hinting at potential delays or a slow approach in approving S-1 registration statements. While the SEC gave the green light to 19b-4 filings from various companies such as VanEck, BlackRock, and Grayscale on May 23, final approvals for listing and trading ETFs on U.S. exchanges may still be months away.
Gensler also noted in the interview that cryptocurrency firms were engaging in activities not permitted by traditional exchanges, indicating that the SEC’s stance on enforcement actions is unlikely to change under his leadership. The SEC has taken legal action against companies like Ripple, Coinbase, and Binance, but faced setbacks when a Utah judge ordered the closure of one of its regional offices due to “bad faith conduct” in court, resulting in a $1.8 million payment.
Despite Gensler’s suggestion of potential delays in approving spot Ether ETFs, the SEC has initiated the process for listing shares on exchanges. The approval of spot Ether ETF 19b-4 filings came after the SEC approved several spot Bitcoin (BTC) ETF applications, a significant development for the industry. Prior to Gensler’s comments, Bloomberg ETF analyst Eric Balchunas had predicted a possible launch date for spot Ether ETFs on July 4.
Unlike with spot Bitcoin ETFs, the approval for spot Ether ETFs did not require a vote from the five commissioners, as they were greenlighted by the SEC’s Trading and Markets Division. Gensler is expected to continue serving as SEC chair until 2026. Although SEC Commissioner Caroline Crenshaw’s term officially ended on June 5, it remains unclear whether U.S. President Joe Biden will nominate a replacement or allow her to stay in her position.
In other news, Ether ETFs are anticipated to debut in June, while CZ has departed from Binance France. These and other updates can be found in Hodler’s Digest from May 26 to June 1.