The US Securities and Exchange Commission (SEC) has given the green light to eight spot Ether exchange-traded funds (ETFs), paving the way for various US exchanges to list them. However, trading can only commence once these ETFs obtain the required S-1 registration statement approvals.
SEC Chairman Gary Gensler emphasized that the fate of these ETFs depends on how quickly issuers address feedback from the SEC. Gensler stated, “These registrants are self-motivated to respond to the comments they get, but it’s really up to them how quickly they do so.”
Gensler’s previous remarks on CNBC suggested that the approval process for the S-1 Forms might take some time, leading to speculation that the SEC could delay the process. Bloomberg ETF analyst James Seyffart indicated that this procedure could span weeks or even months.
The SEC’s shift towards approving spot Ether ETFs just before the initial decision deadline was partly influenced by Grayscale’s successful court challenge regarding Bitcoin ETFs last year. Grayscale’s argument that since Bitcoin futures ETFs were approved, there should be no reason to deny spot Bitcoin ETFs impacted the approval of these ETFs in January.
Seyffart expressed surprise at the SEC’s approval after months of predicting low chances. He suggested that SEC Commissioner Jamie Lizárraga, who has ties to Democrat Nancy Pelosi, might have influenced the decision.
Pelosi and several House Democrats have shown support for crypto, as evidenced by the passage of the Financial Innovation and Technology for the 21st Century Act (FIT21) crypto bill on May 22. The future of spot Ether ETFs in the US hinges on how swiftly issuers can respond to SEC feedback, potentially opening up new opportunities in the crypto investment space.
