SEC Chair Gary Gensler recently spoke at the Bloomberg Investment Summit, expressing confidence in the approval process for spot Ethereum ETFs. While he did not provide a specific timeline for when this approval might happen, he did mention that the process is currently focused on asset managers. Gensler emphasized the importance of asset managers making full disclosures in their registration statements in order for them to go effective. Despite the ongoing work, Gensler believes that the process is going smoothly.
Initially, Gensler suggested that spot Ethereum ETFs would go live in the summer. The recent approval of the 19b-4 forms by the SEC has paved the way for this new investment class. Currently, both the SEC and issuers are working on S-1 filings that need approval before the products can begin trading. Some analysts predict that spot Ethereum ETFs will be live by July 2nd. Asset managers have been reviewing their applications for these financial vehicles, with companies like BlackRock and VanEck taking steps towards approval.
There is a high level of anticipation surrounding the launch of spot Ethereum ETFs, with some expecting them to mirror the success seen with spot Bitcoin ETFs. However, banking giant JPMorgan has expressed skepticism about this likelihood. During a recent Senate Appropriations Subcommittee on Financial Services meeting, Gensler discussed Ethereum ETFs and the approval process but declined to comment on the relationship between crypto and the upcoming elections.
Mark Cuban, owner of the Dallas Mavericks, has criticized the Biden administration’s anti-crypto stance, suggesting that it could lead to a win for Donald Trump in the upcoming elections. Cuban specifically called out Gensler for making it difficult for legitimate crypto companies to operate. However, Gensler himself does not see a need for regulators to enhance existing laws, stating that there is no inconsistency between crypto securities and current securities laws. He has openly criticized digital assets for using non-compliant rails outside of ETPs.
The approval process for spot Ethereum ETFs is progressing smoothly, with a potential launch date in the near future. Despite some skepticism and criticism from industry experts and figures like Mark Cuban, Gensler remains confident in the current regulatory framework for digital assets. The future of Ethereum ETFs looks promising, but the final decision rests with the SEC and the asset managers involved.