Gary Gensler: ETH ETF Approval Will Take Time

SEC Chair Gary Gensler has indicated that the approval process for an Ethereum ETF will take time, highlighting the need for a thorough and careful review

The U.S. Securities and Exchange Commission (SEC) made a surprising decision on May 23 to approve spot Ethereum ETFs, albeit in part, even though the agency had already decided to deny pending applications the week before the decision.

The persistent inquiry regarding the timing of the clearance of these products for trading has arisen after the significant decision.

Gary Gensler, the SEC Chair, is the most recent individual to provide commentary on the matter. Nevertheless, many individuals may not want to be different from the agency chief’s response.

Another Protracted Delay?

Gensler stated in an interview with CNBC on Wednesday, June 5, that the S-1 registration statement approvals may be a marathon rather than a sprint and that the subsequent stages in the Ethereum ETF approval process “will likely take some time.” Nevertheless, the SEC chair’s demeanor was not entirely unfavorable.

He acknowledged that the Ethereum ETF certification process may be lengthy but indicated that the work was already underway.

These statements are being made in response to the fact that numerous imminent issuers have recently made amendments to their applications, indicating that they are in ongoing communication with the agency. The amendments include the names of banking partners and custodians and commitments to refrain from engaging in the stake. Nevertheless, these funds’ fees have yet to be determined.

What the Experts Are Saying

Numerous experts have praised the ongoing communication between the SEC and imminent issuers as significantly positive.

Bloomberg Senior ETF analyst Eric Balchunas argued that issuers could receive the SEC’s approval as early as June 2024 in response to BlackRock’s S-1 filing amendment at the end of May 2024. He also suggested that July 4 may be a potential date to monitor.

Unlike Balchunas, James Seyffart, a fellow Bloomberg ETF analyst, has refrained from providing a specific date. However, he continues to assert that the approval of S-1s is more likely to occur within weeks rather than months.

On the Flipside

Gensler’s definition of “a while” is still subject to debate.
Experts anticipate that Ethereum ETFs will not achieve the same level of success as Bitcoin in terms of inflows.

The Significance of This

Gary Gensler’s statements as the chair of the Securities and Exchange Commission (SEC) can offer valuable insight into the agency’s operations. These insights are precious as investors eagerly anticipate launching Ethereum ETFs for trading.