In an interview at the Bloomberg Investment Summit, Chairman of the U.S. Securities and Exchange Commission (SEC) Gary Gensler expressed confidence in the approval process for a spot Ethereum (ETH) exchange-traded fund (ETF), but did not provide a specific timetable.
He also declined to comment on how the current government’s stance on cryptocurrencies might affect the upcoming elections.
Spot Ethereum ETF approval process running smoothly
Gensler emphasized that the main focus now is on asset management companies. He stated, “This is really about asset management companies making full disclosures so that these registration statements can be effective.” Despite the work in progress, Gensler mentioned that the process is still running smoothly, saying, “I don’t know time, but it’s progressing well.”
Initially, Gensler suggested that the spot Ethereum ETF would be launched in the summer. Last month, the SEC approved the 19b-4 form, paving the way for this investment category. Currently, the SEC and issuers are processing S-1 filings, which need approval before the product begins trading. Some expert analysts predict that the spot Ethereum ETF will go live on July 2.
In recent days, some asset management companies have been reviewing their applications for these financial instruments. For example, investment giant BlackRock recently released a revised statement that includes key details about fees and seed funds. In addition, another potential issuer, VanEck, submitted an 8-A form, getting closer to approval.
Earlier this month, Gensler discussed the Ethereum ETF and its approval process when speaking at the U.S. Senate Appropriations Subcommittee on Financial Services. There are high hopes for the spot Ethereum ETF, with some expecting them to replicate the performance of the spot Bitcoin ETF after approval. However, banking giant JPMorgan recently expressed doubts about this possibility.
Politics and crypto
Gary Gensler was also allowed to comment on the current state of cryptocurrencies and their relationship with the upcoming elections. Gensler straightforwardly responded, “I don’t talk about elections.”
Just recently, Dallas Mavericks owner Mark Cuban suggested that due to the Biden administration’s anti-crypto stance, Trump may win the upcoming elections. Cuban even directly mentioned that Gensler made it “almost impossible for legitimate cryptocurrency companies to operate.”
However, the Chairman of the U.S. Securities and Exchange Commission believes that regulators do not need to improve existing laws. He said, “Crypto securities and securities law are not inconsistent.”
Regulators also publicly expressed criticism of digital assets. He mentioned the use of non-compliant tracks outside of ETPs. In some cases, the Chairman of the U.S. Securities and Exchange Commission referred to some cryptocurrencies as securities.
