SEC Chair Gary Gensler recently stated that the approval of spot Ether (ETH) exchange-traded funds (ETF) will require some time, according to a report on CNBC’s “Squawk Box.” This suggests that the SEC is currently reviewing the S-1 forms of potential spot ETH ETF candidates before making them available to the public.
On May 23, the SEC approved the 19-4b forms of various spot ETH ETF applicants, including well-known names like VanEck, BlackRock, Fidelity, and Grayscale. This decision marks a significant shift after a period of uncertainty and comes shortly after spot Bitcoin (BTC) ETFs received approval under Gensler’s leadership.
Gensler’s cautious approach to digital assets and his emphasis on investor protection have been a point of contention within the crypto community. Despite criticisms, Gensler has warned investors about the risks associated with crypto assets and has been vocal about the need for proper disclosures in the industry.
During a recent interview, Bloomberg ETF analyst James Seyffart suggested that the SEC’s approval of spot ETH ETFs was influenced by political considerations, as support for crypto-friendly policies grows ahead of the 2024 U.S. presidential election.
In a separate appearance on CNBC, Gensler criticized the digital asset sector for its lack of transparency and investor protections. He highlighted the regulatory actions taken against key figures in the industry, implying that more scrutiny is needed to ensure the industry’s credibility.
Despite Gensler’s tough stance on crypto, many believe that the approval of spot ETH ETFs and spot BTC ETFs could pave the way for wider adoption of digital assets in the United States.