The final approval for the spot Ethereum ETFs might take some time, according to Gary Gensler
The SEC is cautious about listing these ETFs on U.S. exchanges, despite initially approving the 19b-4 filings.
Through it all, the agency must carefully consider applications like these to maintain public trust.
Overall, Bloomberg ETF analyst Eric Balchunas predicts that we might see these ETFs launch by July 4.
There has been a surge in interest from institutions and individual investors over Exchange Traded Funds (ETFs) on Bitcoin—and very recently, Ethereum.
However, these days, it seems that the more interest is shown from investors, the more regulatory scrutiny we see from regulatory bodies like the US Securities and Exchange Commission.
Despite the recent green light on the spot Ethereum ETFs on 23 May, a recent interview with SEC chair, Gary Gensler has shed some light on the final approval process with the spot Ethereum ETFs, and the odds of a quick approval don’t seem very promising.
In said interview with CNBC, Gensler mentioned that the approval of the final S-1 filings that would make the spot Ethereum ETFs fit for trading is a “complex matter”. Because of this, Gensler emphasized that the next few steps to the approval of these filings will “take some time.”
This means that the SEC is in no hurry to approve the spot Ethereum ETFs, and is taking a cautious approach to listing these ETFs on U.S. exchanges.
Recall that on 23 May this year, the SEC approved the preliminary 19b-4 filings from asset managers like Franklin Templeton, Invesco Galaxy, BlackRock, VanEck and four others.
However, despite this initial approval of the 19b-4 filings, the final approvals of the S-1 filings might not be forthcoming, showing obvious problems with the regulatory environment, and how the SEC must balance this innovation with protecting customers.
Moreover, Gensler also mentioned that one reason why the approval of these spot Ethereum ETFs cannot be so straightforward is that crypto firms typically engage in activities that traditional exchanges cannot.
This clear difference between the crypto and traditional financial institutions brings up the need for clear-cut and realistic guidelines, especially after the SEC was recently ordered to close its Salt Lake Regional Office this year, after Federal Judge, Robert Shelby dismissed the agency’s civil lawsuit against Digital Licensing.
Moreover, this case dismissal also had the SEC pay a fine of roughly $1 million for attorney fees and costs and $750,000 for receiver fees and costs.
This incident further highlights the need for the US agency to carefully consider every decision before making them public.
It is interesting how the SEC’s approval process for the Ether ETFs is similar to its approach to the Bitcoin ETF applications.
Bloomberg ETF analyst Eric Balchunas even stated in a tweet that we might be seeing these ETFs go live by 4 July (which is also the US Independence Day), after another round of "fine-tune comments".
The Ethereum ETFs to go live on 4 July
Overall, the chance of the Ethereum ETFs going live soon at this point is a complex topic, and the crypto community continues to wait for the final approval of these S-1 filings.
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