With the recent approval of Bitcoin [BTC] ETFs, attention has now shifted to the possibility of an Ethereum [ETH] ETF.
However, unlike its counterpart, the path to approval for ETH ETFs remains uncertain, leaving the market speculating about a potential timeline.
Adding to the intrigue, SEC Chair Gary Gensler has offered no clear indication of whether the commission will approve a spot Ether ETF anytime soon.
In a recent interview with Yahoo Finance, Gensler avoided directly addressing the question, opting not to prejudge any filings.
He noted,
“I don’t want to prejudge anyone filing, and as you said, there are ten filings in front of us.”
He further added,
“So, news alert, I’m not going to prejudge that. But to your question, we look at the facts and circumstances and that which was in front of us.”
Will ETH ETF receive similar validation?
Amidst the anticipation surrounding the approval of an Ethereum ETF, major players like BlackRock and Fidelity are already vying for a spot in the market.
Despite optimism fueled by the presence of ether futures ETFs and Grayscale’s past success against the SEC, Bloomberg’s senior analyst Eric Balchunas warns that the SEC’s silence could signal potential hurdles.
“Normally I’d say this was good sign but as far as I know the Staff has not given any comments yet to the issuers, which is not a good sign as we past when they gave comments on btc ETFs.”
Notably, while Gensler remained ambiguous about the ETH ETF approval, his disapproval of the crypto industry was evident, despite his role in the recent Bitcoin ETF vote.
The future of ETFs
In the interview, Gensler criticized the crypto industry for widespread fraud and abuse, pointing to recent bankruptcies.
He slammed intermediaries for not disclosing how they handle investors’ money, comparing their actions to things that wouldn’t be allowed on traditional stock exchanges.
With the potential approval of an ETH ETF looming, there’s speculation that it could open doors for broader acceptance of similar crypto ETFs in traditional finance.
However, Gensler’s conspicuous silence on the SEC’s stance hints at a complex approval process ahead, leaving investors and market participants in anticipation.