Gensler states Ethereum ETF launch date reliant on issuers not SEC

The fate of United States-based spot Ether exchange-traded funds (ETF) will be determined by how swiftly issuers can address feedback from the Securities and Exchange Commission (SEC), according to Chair Gary Gensler.
Gensler’s statements suggest that the responsibility for approvals lies with Ether (ETH) issuers and indicate that the SEC will not prolong the process as some had feared.
On May 23, the SEC greenlit eight 19b-4 filings for the listing of spot Ether ETFs on various U.S. exchanges, but trading cannot commence until the necessary S-1 registration statement approvals are obtained.
“It is up to these registrants to decide how promptly they respond to the comments they receive, although they are motivated to be cooperative,” Gensler stated, as reported by Reuters on June 6.
These comments illuminate Gensler’s previous remarks on CNBC, where he had suggested that the next steps would require time. This had led some to believe that the SEC would take its time in approving the S-1 Forms.
Bloomberg ETF analyst Eric Balchunas had previously speculated that the process could take weeks or even months, with the first week of July being his primary projection.
Grayscale’s legal challenge influenced the decision on Ether ETFs
The SEC has not yet clarified why it altered its stance on spot Ether ETFs just days before the initial decision deadline.
Nonetheless, Gensler hinted to Reuters that the change may have been prompted by Grayscale’s legal challenge regarding a Bitcoin (BTC) ETF in 2023.
Grayscale had successfully argued in court that since the SEC had approved Bitcoin futures ETFs, there was no justification for denying spot Bitcoin ETFs. This argument played a crucial role in the approval of spot Bitcoin ETFs in January.
Gensler told Reuters that Ethereum’s case was similar, with SEC staff examining the Ether filings and noting the similarities in correlations with the Bitcoin market.
Alternate theory: Influence from SEC commissioner linked to Nancy Pelosi
Bloomberg ETF analyst James Seyffart, who had not anticipated the approval after predicting its unlikeliness for months, shared an alternative theory. He suggested that the reversal on Ether ETFs may have been influenced by SEC commissioner Jamie Lizárraga, who has ties to a prominent member of the U.S. Democratic Party, Nancy Pelosi.
Seyffart mentioned in the Bits+Bips podcast from Unchained, “What I heard from other people was that this could have come from Lizarraga, who spent a significant amount of time working — he used to be Nancy Pelosi’s right-hand man.”
He added, “Even leading up to the ETH stuff, Dems in the Senate and the House were really concerned with how the crypto polling was showing up and how many people own it.”
Pelosi was among the House Democrats who supported the Financial Innovation and Technology for the 21st Century Act (FIT21) crypto bill, which was approved by the U.S. House of Representatives on May 22, marking a significant moment for the crypto industry.
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