- SEC Chair Gary Gensler has weighed in on the next steps following the recent shock Ethereum ETF approvals.
- Gensler’s statements come as the agency continues to work with impending issuers on S-1 registration filings.
- Experts have suggested that things are looking up.
On May 23, the U.S. SEC made the shock decision to approve , albeit in part, spot Ethereum ETFs against prevailing sentiment until the week of the decision that the agency had already decided to reject pending applications.
Following the momentous decision, the nagging question has become when these products will be cleared for trading. The latest to weigh in on the matter is Gary Gensler , the SEC Chair himself. The agency chief’s response, however, may not be what many want to hear.
Another Long Wait?
Speaking to CNBC on Wednesday, June 5, Gensler asserted that the next steps in the Ethereum ETF approval process “will likely take some time,” signaling that S-1 registration statement approvals may be a marathon rather than a sprint. Still, the SEC chair’s tone was not all negative.
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Beyond noting that the complete Ethereum ETF approval process may take a while, he also stated that the work was already underway.
These statements come as several impending issuers have made amendments to their applications in recent weeks in a sign of ongoing communication with the agency. Among these amendments are commitments not to engage in staking and the names of banking partners and custodians. Finer details like the fees these funds will charge have, however, yet to be decided.
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What Experts Are Saying
Several experts have touted the ongoing communication between the SEC and impending issuers as significantly positive. Responding to BlackRock’s S-1 filing amendment at the end of May 2024, Bloomberg Senior ETF analyst Eric Balchunas contended issuers could get the SEC nod as soon as the end of June 2024 while projecting July 4 as the possible date to watch.
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Unlike Balchunas, fellow Bloomberg ETF analyst James Seyffart has shied away from giving a specific date. Still, he maintains that S-1 approvals are more likely a matter of weeks, not months.
On the Flipside
- What Gensler means by “a while” remains open to debate.
- Experts believe that Ethereum ETFs are unlikely to match Bitcoin’s success in terms of inflows.
Why This Matters
As SEC chair, Gary Gensler’s statements can provide valuable insight into the agency’s activities. These insights are particularly valuable as investors wait breathlessly for the opening of Ethereum ETFs for trading.
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