SEC Chair Gensler: Spot Ethereum ETF Approval Process Progressing Smoothly
In an interview at the Bloomberg Investment Summit, SEC Chair Gary Gensler expressed confidence in the approval process for spot Ethereum ETFs, though he did not provide a specific timeline.
He also declined to comment on how the current administration’s stance on cryptocurrency might influence the upcoming election.
Spot Ethereum ETF Approval Process Running Smoothly
Gensler highlighted that the main focus now is on asset managers. He stated, “It’s really about the asset managers making full disclosure so that those registration statements can go effective.” Despite the ongoing work, Gensler mentioned the process remains smooth, saying, “I don’t know the timing, but it’s going smoothly.”
Initially, Gensler suggested that spot Ethereum ETFs would go live in the summer. Last month, the SEC approved the 19b-4 forms, paving the way for this investment class. Currently, the SEC and issuers are working on S-1 filings, which need approval before the products can begin trading. Some expert analysts predict that spot Ethereum ETFs will go live on July 2.
In recent days, some asset managers have been reviewing their applications for these financial vehicles. For instance, investment giant BlackRock recently issued amended statements with key details on fees and seed funds. Additionally, VanEck, another prospective issuer, filed the 8-A form, moving closer to approval.
Earlier this month, while speaking before the US Senate Appropriations Subcommittee on Financial Services, Gensler discussed Ethereum ETFs and the approval process. There is high anticipation for spot Ethereum ETFs, with some expecting them to replicate the performance seen after the approval of spot Bitcoin ETFs. However, banking giant JPMorgan recently expressed skepticism about this likelihood.
Politics and Crypto
Gary Gensler was also allowed to comment about the state of crypto and its relationship to the upcoming elections. Gensler responded outrightly, “I don’t speak about elections.”
Just recently, Mark Cuban, owner of the Dallas Mavericks, said that Trump might win the upcoming elections owing to the anti-crypto stance of the Biden regime. Cuban even outrightly mentioned that Gensler makes it “nearly impossible for legitimate crypto companies to operate.”
However, the SEC Chair does not see the need for regulators to improve their already existing laws. He said: “There’s nothing inconsistent about crypto securities and the securities laws.”
The regulator also openly aired his criticism of digital assets. He mentioned the use of non-compliant rails outside of the ETPs. In several cases, the SEC chief termed some cryptos as securities.
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