top of page
Writer's picturemeowdini

Spot Ether ETFs Get Green Light, But Gary Gensler Sits This One Out

The US Securities and Exchange Commission (SEC) approved applications for spot Ether ETFs on May 23rd, marking a significant step for the cryptocurrency industry. However, the approval process for these Ether ETFs differed from the one for spot Bitcoin ETFs earlier this year.



Key Points:

  • Spot Bitcoin vs. Spot Ether Approval: Spot Bitcoin ETFs were approved by a vote of the entire SEC commission, including chairman Gary Gensler. Conversely, the go-ahead for Spot Ether ETFs came from the SEC's Trading and Markets Division.



  • Delegated Authority: The official announcement mentioned "delegated authority," implying a pre-determined approval process for Ether ETFs within the Trading and Markets Division.

  • Industry Reactions: Some market analysts like James Seyffart from Bloomberg view this as a normal procedure. However, others on social media platforms like X suspect this method was used to avoid public scrutiny of individual commissioner votes.

  • Potential Delays: Unlike Bitcoin ETFs, which began trading immediately after approval, Spot Ether ETFs might take weeks or months to debut. This is because they still require S-1 registration, which is a separate approval process.


Why the Discrepancy?

The reasons behind the different approval processes remain unclear. Some speculate it could be due to:

  • Political Considerations: The upcoming US elections and potential political pressure might have influenced the approach.

  • Focus on ESG (Environmental, Social, and Governance) Rules: The SEC might be prioritizing implementing new ESG regulations.


The Road Ahead for Spot Ether ETFs:

While the approval is a positive development, investors need to be patient. Spot Ether ETFs won't be available for trading immediately and could face delays depending on the S-1 registration process.


This story highlights the evolving regulatory landscape surrounding cryptocurrencies in the US. While progress is being made, a clear and consistent approach to approvals might be needed to improve transparency and predictability for the industry.



Disclaimer:

  • We are not financial advisors: This information is for educational purposes only and should not be considered financial advice. Please consult with a qualified financial professional before making any investment decisions.


Komentarze


bottom of page