SEC Chair Gary Gensler has indicated that the approval process for spot Ether (ETH) exchange-traded funds (ETF) will not happen overnight. During an appearance on CNBC’s “Squawk Box,” he mentioned that it will take some time for the regulatory body to review and approve all spot ETH ETF candidates’ S-1 forms, which are necessary before these products can be launched to the public.
On May 23, the SEC approved the 19-4b forms of several spot ETH ETF applicants, including well-known names like VanEck, BlackRock, Fidelity, and Grayscale. This decision marked a shift in the approval landscape after a period of uncertainty and came after spot Bitcoin (BTC) ETFs received the green light earlier.
Despite Gensler’s historical skepticism towards cryptocurrencies and his enforcement-driven approach to regulating digital assets, the approval of spot ETH ETFs has been seen as a positive step by many. Some analysts believe that this decision was influenced by the increasing bipartisan support for crypto-friendly policies ahead of the 2024 U.S. presidential election.
During his CNBC appearance, Gensler criticized the digital asset sector for lacking proper investor protections and disclosures. He pointed out that some key figures in the industry are facing legal issues, which could undermine the credibility of the entire sector. Despite these concerns, the approval of spot ETH ETFs and spot BTC ETFs by the SEC is seen as a potential catalyst for wider adoption of digital assets in the U.S.
While Gensler’s comments may have sparked debate within the crypto community, it is clear that the regulatory landscape for digital assets is evolving, and the approval of ETFs could pave the way for further mainstream adoption of cryptocurrencies in the United States.
