SEC Chair Gary Gensler, in an interview at the Bloomberg Investment Summit, expressed confidence in the approval process for spot Ethereum ETFs. While he did not provide a specific timeline for the approval, he mentioned that the focus is currently on asset managers making full disclosure in their registration statements. Gensler seemed optimistic about the ongoing work, stating that the process is smooth, although he refrained from giving a definitive timeline.
Initially, Gensler hinted 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, awaiting approval before these products can start trading. Analysts are predicting a potential launch date of July 2 for the spot Ethereum ETFs. Asset managers, like BlackRock and VanEck, have been actively reviewing their applications and filing necessary forms to move closer to approval.
There is a high level of anticipation surrounding the approval of spot Ethereum ETFs, with expectations that they could replicate the success seen after the approval of spot Bitcoin ETFs. However, not everyone shares the same level of optimism. JPMorgan recently expressed doubts about the likelihood of approval for these ETFs. SEC Chair Gensler’s refusal to comment on the upcoming elections reflects a focus on the regulatory process rather than political implications.
In response to criticism from figures like Mark Cuban, who suggested that Gensler’s stance could hinder legitimate crypto companies, the SEC Chair maintains that existing securities laws are adequate. Gensler does not see a need for regulators to enhance current legislation, asserting that crypto securities are not inconsistent with existing laws. Despite his optimism for spot Ethereum ETFs, Gensler openly criticizes certain digital assets for using non-compliant rails outside of Exchange-Traded Products (ETPs).
Overall, the road to approval for spot Ethereum ETFs appears to be progressing steadily, with both regulators and issuers working diligently towards the goal. As the industry awaits further developments, the outcome of this process will undoubtedly have a significant impact on the cryptocurrency market.
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