SEC Chair Gensler Provides Clarity on Approval of Spot Bitcoin ETF, Does Not Guarantee Future of Ethereum ETFs

SEC Chair Gary Gensler recently discussed the approval of spot Bitcoin ETFs in a CNBC interview. However, he made it clear that this decision does not guarantee a similar outcome for Ethereum ETFs. Despite interest from major firms like Fidelity and BlackRock in launching a spot Ethereum ETF, Gensler suggested that the SEC maintains a neutral stance. He emphasized that the approval of Bitcoin ETFs does not signify an endorsement of Bitcoin, leaving the fate of Ethereum ETFs uncertain.

In the interview, Gensler also criticized Bitcoin’s connection to ransomware, despite the SEC’s previous approval of 11 Spot Bitcoin ETFs this year. He acknowledged that the approved applications were similar to those previously rejected but expressed concern over Bitcoin’s association with ransomware, which has influenced his negative view of the cryptocurrency.

Regarding spot Ether exchange-traded funds (ETFs), Gensler provided minimal details on the potential timing or decision-making process. He stated that the evaluation approach for Ether ETFs would mirror that of Bitcoin ETFs but did not offer any insights into their progress or expected decision dates.

Gensler clarified that his vote in favor of approving spot Bitcoin products did not constitute an endorsement of Bitcoin. He emphasized the importance of moving forward in light of a recent court ruling. However, the SEC has postponed its decision on the Invesco Galaxy Ether ETF approval and deferred decisions on various other Ethereum ETF applications from Grayscale, Fidelity, and BlackRock, among others.

The SEC faces deadlines for various ETF applications, including those from VanEck, ARK 21Shares, Hashdex, Grayscale, Invesco, Fidelity, and BlackRock. ETF analyst James Seyffart from Bloomberg anticipates simultaneous decisions on all pending Ether ETF applications by May 23, similar to the SEC’s approach to approving spot Bitcoin ETFs in January.