Gary Gensler predicts approval for Spot Ether ETFs will be delayed

Gary Gensler, the Chair of the United States Securities and Exchange Commission (SEC), has hinted at possible delays in approving spot Ether (ETH) exchange-traded funds (ETFs) offered by asset managers 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,” indicating that the commission may be slow in approving S-1 registration statements. While the SEC granted approval for 19b-4 filings from various companies such as VanEck, BlackRock, and Fidelity on May 23, 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 the law. This suggests that the SEC’s stance on enforcement actions is unlikely to change during Gensler’s tenure. Despite taking legal action against companies like Ripple, Coinbase, Binance, and Kraken, the SEC faced repercussions and had to close one of its regional offices due to a court order to pay $1.8 million for “bad faith conduct.”
While Gensler hinted at a potential slowdown in the approval process for spot Ether ETFs, the SEC has already initiated steps towards listing shares on exchanges. The approval for spot Ether ETF 19b-4 filings followed the SEC’s approval of several spot Bitcoin (BTC) ETF applications, a first in the industry. Prior to Gensler’s comments, Bloomberg ETF analyst Eric Balchunas had predicted a possible launch date of July 4 for spot Ether ETFs.
In contrast to spot Bitcoin ETF approvals, spot Ether ETFs did not require a vote from the five commissioners as they were greenlit 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, President Joe Biden had not yet announced whether he would nominate a replacement or allow her to remain in office at the time of publication.
In other news, expectations are high for Ether ETFs to debut in June, while Binance France sees the departure of CZ. These and more updates can be found in Hodler’s Digest from May 26 to June 1.