SEC Chair Gensler’s Comments Spark Hope for Faster Ethereum ETF Approvals

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• Mixed signals from SEC Chair Gary Gensler create uncertainty about the timing of Ethereum ETF approvals in the market.
• Ethereum’s price fluctuated after Gensler’s comments, with the Relative Strength Index indicating continued buying pressure.

The cryptocurrency community is closely watching developments following comments from SEC Chair Gary Gensler about the approval process for spot Ethereum ETF. 

In an interview with Reuters, Gensler mentioned that the timing for these approvals largely depends on how quickly issuers respond to the SEC’s feedback. 

He said, “These registrants are self-motivated to be responsive to the comments they get, but it’s really up to them how responsive they are.”

This statement has led to optimism among those worried about delays, suggesting that the SEC might be moving towards a faster review process. However, in another discussion with CNBC’s Squawk Box, Gensler noted that the underlying exchange trade products still need to undergo a thorough process for disclosure, which could take some time.

This has led to mixed interpretations about the SEC’s actual pace in approving the necessary S-1 Forms for these ETFs.

The mixed nature of Gensler’s comments has raised questions about the SEC’s stance on the broader crypto market. He stated, 

“Exchanges like the New York Stock Exchange (NYSE) get properly regulated to protect against fraud and they don’t trade against you. These crypto exchanges are doing things that we would never allow NYSE to do.” 

This highlights a clear distinction in regulatory expectations between traditional and crypto exchanges.

Following these comments, Ethereum’s price experienced fluctuations. As of the latest data, developed by our writers at ETHNews, ETH was trading at $3,819.16, showing a 0.70% decrease over the past 24 hours. 

Despite this drop, the Relative Strength Index (RSI) for ETH remained above the 50 mark, indicating continued buying pressure.

Grayscale Has a Key Role in this Context

The SEC’s changing view on spot Ether ETFs may be influenced by Grayscale’s legal challenge related to Bitcoin ETFs. Grayscale argued that if the SEC approved Bitcoin futures ETFs, there should be no reason to reject spot Bitcoin ETFs. Gensler noted that the situation with Ethereum is similar, as ETH futures have been traded since last year.

While there is cautious optimism about the potential acceleration of the Ethereum ETF approval process, the SEC’s detailed regulatory requirements and the broader legal context, particularly involving Grayscale, suggest that issuers need to be prepared for a comprehensive review. 

The SEC’s approach will likely balance the need for market innovation with the imperative of investor protection.