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The licensing of spot Ether exchange-traded funds (ETFs) in the US may depend on issuers’ reaction to SEC comments, according to Gary Gensler, Chair of the Securities and Exchange Commission (SEC).
According to Gensler, the approval of Ether ETFs depends on how soon issuers respond to SEC comments. Contrary to earlier rumors, the SEC does not want to drag out the clearance procedure.
Gensler stated, “These registrants are self-motivated to be responsive to the comments they get, but it’s really up to them how responsive they are.”
Gensler’s recent comments provide clarity, contrasting with his earlier statement on CNBC hinting at a longer process. Bloomberg ETF analyst Eric Balchunas suggested approval could take weeks or months, with a base case for the first week of July.
The SEC’s change in stance regarding Ether ETFs remains unexplained. However, Gensler hinted that Grayscale’s Bitcoin ETF challenge in 2023 might have influenced the decision.
Grayscale’s successful legal challenge argued that since the SEC approved Bitcoin futures ETFs, there should be no reason to deny spot Bitcoin ETFs. This argument played a role in approving spot Bitcoin ETFs in January.
Gensler explained, “The SEC staff looked at these [Ether] filings, looked at the various correlations […] the correlations are relatively similar to the correlations in the Bitcoin space.”