Gary Gensler, Chair of the United States Securities and Exchange Commission (SEC), has hinted at a potential delay in the final approval process for asset managers looking to offer spot Ether (ETH) exchange-traded funds (ETFs) on exchanges.
During an interview with CNBC on June 5, Gensler mentioned that the SEC’s approval of spot Ether ETFs will “take some time,” indicating a possible slowdown in signing off on S-1 registration statements. While the SEC recently approved 19b-4 filings from various firms like VanEck, BlackRock, and Fidelity, the final approvals necessary for the listing and trading of ETFs on U.S. exchanges could be a lengthy process.
Gensler also highlighted that cryptocurrency firms were engaging in activities not permitted by traditional exchanges, suggesting that the commission’s enforcement actions stance will remain consistent under his leadership. Despite lawsuits against Ripple, Coinbase, Binance, and Kraken, the SEC had to close one of its regional offices after being ordered to pay $1.8 million by a Utah judge for “bad faith conduct” in court.
While the approval process for spot Ether ETFs may face delays, the SEC has started paving the way for listing shares on exchanges. The recent spot Ether ETF approvals followed the SEC’s approval of spot Bitcoin (BTC) ETF applications, a first in the industry. Prior to Gensler’s remarks, Bloomberg ETF analyst Eric Balchunas had predicted a possible July 4 launch for spot Ether ETFs.
In contrast to 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 serve as SEC chair until 2026, while the term of SEC Commissioner Caroline Crenshaw officially ended on June 5. However, as of the publication date, U.S. President Joe Biden had not announced whether he would nominate a replacement for Crenshaw or allow her to continue in the role.
In other news, the launch of Ether ETFs is anticipated in June, while CZ departs from Binance France. These and other updates can be found in Hodler’s Digest from May 26 to June 1.