The Chair of the United States Securities and Exchange Commission (SEC), Gary Gensler, has hinted at a possible 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 will require some time, indicating a potential delay in signing off on S-1 registration statements. While the SEC recently approved 19b-4 filings from various firms including VanEck, BlackRock, and Fidelity, the final approvals necessary for the listing and trading of ETFs on U.S. exchanges may still be months away.
Gensler also noted that cryptocurrency firms were engaging in activities not permitted by traditional exchanges, implying that the SEC’s stance on enforcement actions is unlikely to change under his leadership. Despite ongoing legal battles with companies like Ripple, Coinbase, Binance, and Kraken, the SEC faced setbacks when a judge ordered the closure of one of its regional offices due to “bad faith conduct” in court, resulting in a $1.8 million payment.
While Gensler’s comments suggest a potential slowdown in the approval process for spot Ether ETFs, the SEC has already taken steps towards eventually listing shares on exchanges. The recent approvals for spot Ether ETFs came after the SEC’s milestone approval of spot Bitcoin (BTC) ETF applications, making it a first for the industry. Bloomberg ETF analyst Eric Balchunas had previously predicted a July 4 launch date for spot Ether ETFs.
Unlike spot Bitcoin ETFs, spot Ether ETFs were not voted on by the five SEC commissioners but were instead greenlighted by the SEC’s Trading and Markets Division. Gensler is expected to continue serving as SEC chair until 2026. As SEC Commissioner Caroline Crenshaw’s term officially ended on June 5, it remains to be seen whether U.S. President Joe Biden will announce a replacement or choose to retain her position.
In related news, Ether ETFs are anticipated to launch in June, CZ has left Binance France, and other updates are covered in Hodler’s Digest from May 26 to June 1.