The U.S. Securities and Exchange Commission chairman, Gary Gensler, speaking on CNBC, said that ETH ETF approvals “will take some time.” His remarks suggest that the SEC may delay the S-1 approval process, unsettling investors.
Also Read: Goldman Sachs, Citadel Securities, Citigroup, and UBS join BlackRock’s Bitcoin ETF
The crypto community has been in a frenzy since the SEC approved Ethereum ETFs. The SEC approved Ether ETF applications from eight issuers just over a week ago, in a move that appears to be politically motivated.
Gary Gensler discusses ETH ETFs
Gary Gensler, appearing on CNBC during the HFS digital assets subcommittee hearing, spoke about the future of Ethereum ETFs. “The next step in Ethereum ETF approvals will take some time,” he said.
Following the approval of ETH ETFs, the crypto community expected faster approvals of S-1, but after Gensler’s interview, the process will probably take longer. In the interview, Cramer asked Gensler questions about other tokens, such as Polkadot , Bonk and Osmosis, with millions of dollars in market cap.
Cramer also hinted at the possibility of a Sushi Swap ETF and similar products for other cryptocurrencies. Gensler did not directly comment on Cramer’s proposals, but raised concerns about the operations of crypto issuers.
According to the SEC chairman, many crypto tokens still lack proper disclosure. Crypto investors require proper disclosure to make sound investment judgments.
“cryptocurrency exchanges do things that the law would never allow the NYSE or traditional exchanges to do.”
Gary Gensler.
The SEC approved Bitcoin ETFs in January of this year, achieving massive success. These Bitcoin ETFs are trading on major exchanges like Nasdaq and the New York Stock Exchange (NYSE).
Stakeholders anticipate ETH ETF S-1 approval
In contrast to the expectations of many, the U.S. SEC approved Ethereum ETFs applications made by the eight issuers. The approved Ethereum ETF applications were from Grayscale, Bitwise, Invesco Galaxy, BlackRock, ARK 21Shares, Franklin Templeton, Fidelity, and VanEck.
Also Read: Bitcoin ETFs Make 56% of Fidelity’s and 26% of BlackRock’s 2024 Inflows
Following the approval of 19b-4 applications, observers have pointed out that the U.S. SEC indirectly implied that Ether is not a security. They noted that since ETFs cannot be backed by securities, it was evident that the SEC considered Ether a commodity.
The crypto industry is patiently waiting for the U.S. SEC to approve ETH ETF S-1s to allow the products to hit the market. However, Gensler has called for patience, as the S-1s are still a work in progress. An approval of the S-1 applications by the SEC would enable ETH ETFs to trade on exchanges similarly to Bitcoin ETFs.
Cryptopolitan reporting by Collins J. Okoth
