Gary Gensler, the Chair of the United States Securities and Exchange Commission (SEC), has hinted at potential delays in approving spot Ether (ETH) exchange-traded funds (ETFs) for asset managers on exchanges. During a CNBC interview on June 5, Gensler mentioned that the SEC’s approval process for spot Ether ETFs may take some time, indicating a possible slowdown in signing off on S-1 registration statements. Although the SEC has given the green light to 19b-4 filings from various asset management firms, including VanEck, BlackRock, and Fidelity, final approvals for listing and trading ETFs on U.S. exchanges could be months away.
Gensler also noted in the interview that cryptocurrency firms were engaging in activities that traditional exchanges were not permitted to do under existing laws. This suggests that the SEC’s stance on enforcement actions is unlikely to change under Gensler’s leadership. The SEC has recently taken legal action against companies like Ripple, Coinbase, Binance, and Kraken. Additionally, a regional office of the SEC was closed after a Utah judge ordered the regulator to pay $1.8 million for “bad faith conduct” in court.
Despite the potential delay in spot Ether ETF approvals, the SEC has initiated the process of eventually listing shares on exchanges. The approval of spot Ether ETF 19b-4 filings came after the SEC approved multiple spot Bitcoin (BTC) ETF applications, marking a significant development in the industry. Prior to Gensler’s comments, Bloomberg ETF analyst Eric Balchunas had predicted a potential launch date of July 4 for spot Ether ETFs.
Unlike spot Bitcoin ETFs, spot Ether ETFs were not subject to a formal vote by the five SEC commissioners. Instead, they were approved by the SEC’s Trading and Markets Division. Gensler is expected to serve as SEC chair until 2026, while the term of SEC Commissioner Caroline Crenshaw officially ended on June 5. As of now, U.S. President Joe Biden has not announced whether he will nominate a replacement for Crenshaw or allow her to continue in the role.
In other news, the launch of Ether ETFs is anticipated in June, and Changpeng Zhao has stepped down from Binance France. These updates, along with other developments, can be found in the latest edition of Hodler’s Digest, covering the period from May 26 to June 1.