SEC Chair Gensler Confirms Smooth Progress for US Spot Ether ETFs

The Securities and Exchange Commission (SEC) Chair Gary Gensler announced that the development of the first spot Ether exchange-traded funds (ETFs) is advancing smoothly.

Speaking at a Bloomberg conference on June 25, Gensler did not provide a specific timeline for the ETFs’ launch and avoided speculating on whether they would be live before the November U.S. elections. He highlighted the necessity for asset managers to fully disclose information in their registration statements for the ETFs to become effective.

Gensler explained, “What is in front of us — and it’s done at a staff level — is what’s called the registration statements, the disclosure statements. These disclosures are crucial for investors making informed decisions.”

SEC Approval Pending for Form S-1s

Although the SEC approved 19b-4 filings from eight ETF bidders on May 23, the asset managers are still finalizing their Form S-1s, the last step before the ETFs can begin trading. Analysts speculate that the SEC could approve the funds for trading as early as the first week of July.

The U.S. crypto industry is pushing to make digital assets a key election issue, given the increased enforcement actions by the SEC under Gensler’s leadership. Presidential candidate Donald Trump has vowed to end what he calls President Joe Biden’s “war on crypto,” and billionaire investor Mark Cuban has argued that Gensler’s actions could “literally cost Joe Biden the election.”

Gensler, however, declined to comment on the election and reiterated the importance of adhering to existing crypto securities laws. He noted that many crypto tokens, potentially up to 20,000, are investment contracts or securities under U.S. law but lack proper disclosure for American investors.

“This is a field that the leading lights from a couple of years ago are either in jail, about to go to jail, or are awaiting extradition… We’re bringing that in front of courts, and those will play out because folks that are not complying with the law hurt the American public,” Gensler stated.

Ethereum ETF Providers Update Details

Several leading asset managers have submitted revised proposals for Ethereum ETFs to the SEC. Bloomberg analyst Eric Balchunas noted filings from VanEck, BlackRock, Grayscale, Invesco Galaxy Digital, and Fidelity, updating information on their respective Ethereum funds. VanEck’s filing included a management fee of 0.20%, comparable to Franklin Templeton’s 0.19% fee.

Meanwhile, Andrew Kang, founder and partner at Mechanism Capital, suggested that Ether’s price could drop to as low as $2,400 following the launch of spot ETFs. According to Kang, Ether attracts less institutional interest compared to Bitcoin, with limited incentives for converting spot Ether into ETF form.