Gensler Provides Sneak Peek of Forthcoming SEC Ruling on Ethereum ETFs: Here’s What to Anticipate
US Securities and Exchange Commission (SEC) Chair Gary Gensler has hinted at an upcoming decision regarding Ethereum exchange-traded funds (ETFs), but has provided few details. Gensler indicated that there has been a shift in the SEC’s thinking on these funds following recent court rulings. Although Gensler did not disclose much, he advised everyone to stay tuned for an important update that could have a significant impact on the market.
Gensler has reiterated his view that most cryptocurrencies should be classified as securities, despite recent political developments in Washington, D.C. that may increase the likelihood of spot ether ETFs being approved. Speaking at an Investment Company Institute event in Washington, Gensler stated that he had no specific comments on a particular filing but emphasized that the SEC’s actions are guided by legal frameworks and judicial interpretations.
Gensler’s comments at the event referred to a decision by the D.C. Circuit Court of Appeals that had earlier rejected the SEC’s approach toward spot bitcoin ETFs. He mentioned that the agency had adjusted its position in response to this ruling.
During his public address, Gensler highlighted that the vast number of tokens in the crypto space, approximately 15,000 to 20,000, do not function as currencies. Instead, they typically involve a group of entrepreneurs presenting white papers and websites to attract public investment. Gensler believes this fits into the Supreme Court’s definition of a security.
The SEC recently requested exchanges to resubmit their 19b-4 forms for spot ether ETF applications using standardized language. The agency also initiated direct discussions with potential issuers, such as Fidelity and Grayscale, who filed updated S-1 forms. The SEC must make a final decision on at least one spot ether ETF application by the end of Thursday.
Despite Gensler’s opposition, the US House approved the FIT21 bill on Wednesday, which the SEC chair has pledged to continue opposing. However, analysts anticipate that the SEC will approve the first spot Ethereum ETF today. Five US representatives have urged the SEC and Gensler to apply fair and consistent standards to upcoming Ethereum ETFs, similar to those used for Bitcoin spot ETF approvals.
Senior Bloomberg ETF analyst Eric Balchunas predicts that a disclosure will be made around 4 pm ET today, similar to the timing of the previous Spot Bitcoin ETF announcement.