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) for asset managers on exchanges. During an interview with CNBC on June 5, Gensler mentioned that the SEC’s approval process for spot Ether ETFs would be a lengthy one, indicating a slow approach towards signing off on S-1 registration statements. Although the SEC gave the green light to 19b-4 filings from various companies like VanEck, BlackRock, and Fidelity on May 23, final approvals for listing and trading ETFs on U.S. exchanges may still take several months.
Gensler also commented on cryptocurrency firms engaging in activities that go beyond what traditional exchanges are allowed to do, implying that the SEC’s enforcement actions stance would remain unchanged under his leadership. Despite lawsuits filed against Ripple, Coinbase, Binance, and Kraken, the SEC faced setbacks with a regional office closure after a Utah judge ordered them to pay $1.8 million for “bad faith conduct” during a court case.
While Gensler’s statements hinted at a potential slowdown in spot Ether ETF approvals, the SEC has already initiated the process of eventually listing shares on exchanges. The approval of spot Ether ETF 19b-4 filings followed the SEC’s approval of spot Bitcoin (BTC) ETF applications by five months, marking a significant milestone in the industry. Prior to Gensler’s comments, Bloomberg ETF analyst Eric Balchunas had predicted a launch date of July 4 for spot Ether ETFs.
Unlike spot Bitcoin ETFs, spot Ether ETFs did not require a vote from the five commissioners as they were approved by the SEC’s Trading and Markets Division. Gensler is expected to continue serving 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 plans to nominate a replacement or extend Crenshaw’s term.
In other news, expectations are high for Ether ETFs to launch in June, while Binance France sees CZ stepping down. This update and more can be found in Hodler’s Digest from May 26 to June 1.