The United States Securities and Exchange Commission, (SEC) shocked the broader cryptocurrency world when it approved spot Ethereum ETF against many negative speculations. Now, the question remains when the funds will open for trading.
SEC’ Gary Gensler Clarifies Spot Ethereum ETF Launch Timelines
The SEC chairman, Gary Gensler recently clarified issues regarding the actual launch and the seeming hurdles delaying the spot Ethereum ETF debut. Notably, Gensler maintained the eight registrants will need to satisfy the queries of the regulatory body. This involves their S-1 registration statements which detail investor disclosures amongst other key issues.
According to the SEC chair, “The registrants are self-motivated to be responsive to the comments they get, but it’s really up to them how responsive they are.”
The statement implies that the SEC is willing and prepared to clear the eight as quickly as possible.
Prior to the May application approval, prospective issuers had made compromises by adjusting their filings to comply with the SEC’s requirements. Significantly, Ark Invest, the investment management firm managed by Cathie Wood dropped out of the spot Ethereum ETF race with 21Shares.
While this pullout came after the ETF bagged approval, the overriding sentiment months ago was that the SEC would trash all applications. This is hinged on the commission’s tough stance and categorization of Ethereum.
Criticism from the Crypto Community
As highlighted, Gary Gensler says the hurdle now rests with how fast the issuers will comply with the latest round of regulatory hurdles – updating the S-1 form. In effect, if the SEC is satisfied in a week’s time, or a month’s time, the issuers can go ahead to launch and start trading.
Despite this assurance, there are some in the crypto space who believe the SEC is delaying the process unnecessarily. For instance, billionaire investor Mark Cuban had called out Gensler in the past over the U.S. ‘unprogressive crypto regulatory landscape.”
Cuban had challenged the SEC Chair to study the regulatory environment in Japan and approach the crypto market. Some analysts support Cuban’s views citing the smooth and swift approval of a Bitcoin and Ethereum spot Exchange Traded Funds in Hong Kong.
However, the progress made over the past few weeks by the SEC’s turnaround has gained accolades from industry analysts.
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