- As per the statement, the SEC would not prolong the process as some had expected.
- Issuers are unable to begin trading until they get the necessary clearances for their S-1 filings.
According to the Chair of the Securities and Exchange Commission (SEC), Gary Gensler, the speed with which issuers reply to SEC comments will determine the approval of spot Ethereum exchange-traded funds (ETFs) in the US.
It would seem from Gensler’s remarks that the responsibility for approvals is with the issuers of Ether ETF and that the SEC would not prolong the process as some had expected.
All Eyes on SEC
Although eight 19b-4 applications to offer spot Ether ETFs on different U.S. exchanges were accepted by the SEC on May 23, they are unable to begin trading until they get the necessary clearances for their S-1 registration statements. The level of responsiveness from these registrants is ultimately up to them, Gensler said, as reported by Reuters on June 6.
Gensler had previously said on CNBC that the next procedures would “take some time,” but these comments provide fresh context for his prior statement. A few people thought this suggested the SEC would be slow to approve the S-1 forms.
Just days before the initial decision deadline, the SEC seemed to shift its stance on spot Ether ETFs, but it has not yet provided an explanation for this apparent shift. The SEC authorized Bitcoin futures ETFs in January, and Grayscale was a key player in getting spot Bitcoin ETFs approved in January by successfully arguing in court that there should be no reason to refuse them.
Moreover, Gensler told Reuters that the situation with Ethereum was the same, adding that the SEC team had “looked at these [Ether] filings, looked at the various correlations […] the correlations are relatively similar to the correlations in the Bitcoin space.”
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