- Gensler’s comments about the Ethereum ETF fuel speculation about the speed of the SEC’s review.
- The SEC’s approval of the listing of the ETH ETF signals a changing stance.
The cryptocurrency community is abuzz with speculation following recent comments from SEC Chairman Gary Gensler.
In a report by Reuters, Gensler said the approval process for a spot Ethereum (ETH) exchange-traded fund (ETF) in the United States will depend on the issuer’s response to feedback from the SEC. he said,
“These registrants are self-motivated to respond to the comments they receive, but how responsive they actually are is up to them.”
These developments have sparked optimism among many who fear lengthy delays, suggesting the SEC may move to a more accelerated review process.
However, in a separate conversation with CNBC Squawk Box, Gensler said:
“Basic exchange-traded products must go through a process for disclosure. “It will take some time, but we are working on it right now.”
Some interpreted this as a sign that it may take time for the committee to approve the S-1 form.
This juxtaposition raises questions about the SEC’s stance on the industry.
Discussing the broader cryptocurrency market, Gensler said:
“Exchanges like the New York Stock Exchange (NYSE) are properly regulated to protect against fraud and do not trade against you. And these cryptocurrency exchanges are doing things that we would never allow on the NYSE.”
How did ETH react?
These different remarks caused noticeable fluctuations in the price of ETH. At the time of writing, ETH was trading at $3,819.16, down 0.70% in the last 24 hours.
The relative strength index (RSI), a technical indicator, exceeded 50, indicating significant buying pressure.
Source: TradingView
Grayscale’s role in the Ethereum ETF
The SEC’s change in tone regarding spot Ether ETFs ahead of the deadline has not yet been explained.
However, Gensler hinted in discussions with Reuters that the decision may have been influenced by Grayscale’s legal issues regarding its Bitcoin ETF the previous year.
Grayscale argued that since the SEC approved a Bitcoin futures ETF, there is no reason to reject a spot Bitcoin ETF. Gensler said the situation is similar for Ethereum, as ETH futures have been trading since last year.