Spot Ethereum ETF Approval Process Progresses Smoothly

In an interview at the Bloomberg Investment Summit, SEC Chairman Gary Gensler expressed confidence in the approval process for ethereum spot ETFs, although he did not provide a specific timeline.

He also declined to comment on how the current administration's stance on cryptocurrencies could influence the upcoming election.

Spot ethereum ETF Approval Process Runs Smoothly

Gensler highlighted that the focus is now mainly on asset managers. He said: “It's really about asset managers making full disclosure so that those registration statements can come into effect.” Despite the ongoing work, Gensler mentioned that the process is still going smoothly, saying, “I don't know the timing, but it's going smoothly.”

Initially, Gensler suggested that ethereum spot ETFs would go live in the summer. Last month, the SEC approved Forms 19b-4, paving the way for this type of investment. Currently, the SEC and issuers are working on S-1 filings, which need approval before products can begin marketing. Some expert analysts predict that ethereum spot ETFs will go live on July 2.

In recent days, some asset managers have been reviewing their applications for these financial vehicles. For example, investment giant BlackRock recently issued amended statements with key details on fees and initial funding. Additionally, VanEck, another potential issuer, filed Form 8-A, moving closer to approval.

Earlier this month, while speaking before the US Senate Financial Services Appropriations Subcommittee, Gensler discussed ethereum ETFs and the approval process. There is a lot of hype around ethereum spot ETFs, with some expecting them to replicate the performance seen after the approval of bitcoin spot ETFs. However, banking giant JPMorgan recently expressed skepticism about this possibility.

Politics and cryptography

Gary Gensler was also allowed to comment on the state of cryptocurrencies and their relationship to the upcoming elections. Gensler answered categorically: “I'm not talking about elections.”

Recently, Mark Cuban, owner of the Dallas Mavericks, said that Trump could win the next election due to the Biden regime's anti-crypto stance. Cuban even openly mentioned that Gensler makes it “nearly impossible for legitimate crypto companies to operate.”

However, the SEC chairman sees no need for regulators to improve their existing laws. He said: “There is nothing inconsistent between crypto securities and securities laws.”

The regulator has also been vocal in its criticism of digital assets. He mentioned the use of non-compliant channels outside the ETPs. In several cases, the head of the SEC classified some cryptocurrencies as securities.

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