Spot Ether ETFs Launch in the US Progressing “Smoothly,” Affirms SEC Chair Gensler
In a recent update, Gary Gensler, the Chair of the Securities and Exchange Commission (SEC), conveyed that the rollout of the initial spot Ether exchange-traded funds (ETFs) is advancing seamlessly. Speaking at a Bloomberg conference held on June 25, Gensler refrained from specifying a definitive launch timeline for the ETFs and chose not to delve into the possibility of their debut preceding the upcoming November U.S. elections.
Underlining the significance of comprehensive disclosure by asset managers in their registration statements, deemed essential for the ETFs’ operationalization, Gensler expounded, “What lies before us—crafted at a staff level—are the registration statements and the disclosure statements.”
SEC Continues Evaluation of Form S-1s Approval
Despite the SEC granting approval to 19b-4 declarations from eight ETF contenders on May 23, the asset managers are in the process of fine-tuning their Form S-1s, the ultimate submissions necessitating SEC authorization before the ETFs can commence trading. Speculations from certain analysts hint at the SEC potentially authorizing the funds for trading as early as the initial week of July.
Within the U.S. crypto landscape, concerted efforts have been made to elevate digital assets as an electoral focal point, notably in light of the escalated enforcement actions executed by the SEC during Gensler’s tenure. Presidential aspirant Donald Trump vowed to counter what he labeled as President Joe Biden’s “assault on crypto,” while prominent investor Mark Cuban contended that Gensler’s initiatives might have electoral repercussions for Joe Biden.
In response to these assertions, Gensler opted to sidestep electoral matters and underscored the lucidity of the prevailing regulations governing crypto securities and securities laws. He highlighted that non-adherence to these regulations carries repercussions, remarking, “The compatibility between crypto securities and the securities laws is clear… Regrettably, numerous individuals overlook compliance with the laws.”
Moreover, Gensler emphasized that nearly 20,000 crypto tokens are construed as investment contracts or securities under U.S. legislation but lack the requisite disclosure for American investors.
Ethereum ETF Providers Revise Fee and Investment Particulars
Several prominent asset managers have revised their proposals for Ethereum ETFs submitted to the SEC. Notably, VanEck, BlackRock, Grayscale, Invesco Galaxy Digital, and Fidelity have submitted enhanced details concerning their respective Ethereum funds, as highlighted by Eric Balchunas, an analyst at Bloomberg.
VanEck’s submission unveiled a management fee of 0.20% for its Ethereum fund, aligning with competitors such as Franklin Templeton, which levies a 0.19% management fee.
In a separate observation, Andrew Kang, a founder and partner at Mechanism Capital, suggested a probable substantial downturn in the Ether price, potentially plummeting to as low as $2,400 post the introduction of spot ETFs. Kang underscored that Ether garners comparatively less institutional interest than Bitcoin, with limited incentives for transitioning spot Ether into ETF format.
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