SEC Chairman Gensler Clarifies Approval of Spot Bitcoin ETF and Makes No Guarantees About Ethereum ETF’s Future
In a recent CNBC interview, SEC Chairman Gary Gensler discussed the January approval of a spot Bitcoin ETF, making it clear that the decision does not necessarily portend a similar outcome for the Ethereum ETF. Despite significant interest from major firms such as Fidelity and BlackRock in the launch of a spot Ethereum ETF, Gensler hinted at a merit-neutral stance from the SEC. He pointed out that the approval of the Bitcoin ETF is not an endorsement of Bitcoin and makes the future of the Ethereum ETF bleak.
Gensler Criticizes Bitcoin Ransomware Link Despite ETF Approval
In a recent CNBC interview, U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler pointed out that Bitcoin has a significant share of the ransomware market. Gensler was bearish on Bitcoin despite the SEC’s initial decision to approve 11 spot Bitcoin ETFs this year.
Following this high-profile approval, Gensler issued a statement highlighting the similarities between the approved applications and previously rejected applications. He gained approval by acknowledging that “things have changed.” But he also expressed concerns about the link between Bitcoin and ransomware as a key factor in his continued criticism of the cryptocurrency.
Gary Gensler has been tight-lipped about the possibility of an Ether spot exchange-traded fund (ETF). When asked about potential timing or decision-making process, Gensler provided only minimal details, noting that his approach to evaluating the Ether ETF mirrors that of the Bitcoin ETF and did not provide any insight into its current progress or expected decision date. .
“What we did in January was put together in one set of documents,” he said. There are other papers before us, but I will not prejudge them for you or the audience. “That is something that is discussed and reviewed by a committee of five people.”
SEC Decision on Ethereum ETF
Gensler voted in favor of authorizing an officially listed spot Bitcoin product a month ago. He made it clear that his decision was not an endorsement of Bitcoin and stressed the importance of moving forward in light of the recent court ruling.
The regulator postponed its decision on approving the Invesco Galaxy Ether ETF until February 6. The delay follows a similar delay in Invesco’s ETF application in December.
Additionally, the SEC has postponed decisions on various other Ethereum ETF applications, including those from the world’s largest asset management firms, Grayscale, Fidelity, and BlackRock. VanEck and Hashdex are among other contenders seeking ETF approval.
The SEC is approaching deadlines for applications for various ETFs. VanEck on May 23rd, ARK 21Shares on May 24th, Hashdex on May 30th, Grayscale on June 18th, and Invesco on July 5th. Decisions on Fidelity and BlackRock’s applications are due Aug. 3 and Aug. .7 respectively.
Bloomberg ETF analyst James Seyffart expects a simultaneous decision on all pending Ether ETF applications by May 23, similar to the SEC’s approach in approving a spot Bitcoin ETF on January 10.