Gary Gensler, the Chair of the United States Securities and Exchange Commission (SEC), 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 likely “take some time,” indicating that the commission may take its time in reviewing and approving S-1 registration statements. While the SEC recently approved 19b-4 filings from various companies including VanEck, BlackRock, Fidelity, Grayscale, and others, the final approvals necessary for listing and trading ETFs on U.S. exchanges could still be several months away.
Gensler also noted that cryptocurrency firms were participating in activities that traditional exchanges are not allowed to do under current laws, suggesting that the SEC’s enforcement stance is unlikely to change during his tenure. The SEC has been involved in legal battles with companies like Ripple, Coinbase, Binance, and Kraken, and recently had to close one of its regional offices due to a court order to pay $1.8 million for “bad faith conduct.”
Despite the potential delay in spot Ether ETF approvals, the SEC has laid the groundwork for eventually listing shares on exchanges. The recent approvals for spot Ether ETFs came after the SEC’s groundbreaking approval of spot Bitcoin (BTC) ETF applications. Bloomberg ETF analyst Eric Balchunas had previously predicted a July 4 launch date for spot Ether ETFs.
Unlike the spot Bitcoin ETFs, the spot Ether ETFs did not require a vote from the five commissioners at the SEC, as they were approved by the Trading and Markets Division. Gensler is expected to continue serving as SEC Chair until 2026, while Commissioner Caroline Crenshaw’s term officially ended on June 5, with no announcement yet from President Joe Biden on her replacement.
In other news, the launch of Ether ETFs is anticipated for June, CZ steps down from Binance France, and more updates can be found in Hodler’s Digest from May 26 to June 1.