Gary Gensler, Chairman of the U.S. Securities and Exchange Commission (SEC), reiterated in an interview on Wednesday that the decision to approve a Bitcoin spot ETF in January does not mean that other cryptocurrency-based ETFs, such as several Ethereum spot ETFs awaiting SEC approval, will also be approved.
Gensler stated during the program on Wednesday, “We have similar products, including ETFs for gold and silver. Technically, they are exchange-traded products (ETPs). We approved Bitcoin spot ETFs for about 11 issuers at once, but this is not the first way to purchase Bitcoin or express the risks of Bitcoin.”
The SEC chairman also reaffirmed his position that most cryptocurrencies are unregistered securities and emphasized the agency’s responsibility to protect investors from fraud and market manipulation. “We have a responsibility at the SEC for investor education, particularly for investments that don’t fit within the securities laws or other commodity laws. We have 15 to 20,000 different asset categories of cryptocurrencies, many of which are actually what’s called investment contracts or securities.”
Gensler also emphasized that although the SEC approved a Bitcoin ETF, it does not necessarily mean that other cryptocurrency-based ETFs will also be approved. In the past few months, asset management giants such as BlackRock and Fidelity have submitted applications for Ethereum spot ETFs to the SEC.
When asked about whether the SEC will approve applications for Ethereum spot ETFs, the SEC chairman responded cautiously. It is worth noting that the SEC has already postponed several decisions on Ethereum spot ETFs this year. Gensler previously stated that the SEC approved Bitcoin as a non-security commodity, and it should not be seen as support for other cryptocurrencies.
The views of the cryptocurrency and financial industry on the approval of Ethereum spot ETFs in the near future remain divided. Bloomberg ETF analyst Eric Balchunas expressed optimism in January, stating that there is a 70% chance of approval by the SEC in May. Geoffrey Kendrick, Head of FX at Standard Chartered Bank, predicted in a report that the Ethereum spot ETF will be approved for listing on May 23.
However, several institutions hold a pessimistic view on the SEC’s approval this year. Mark Yusko, Founder and CEO of Morgan Creek Capital, predicted last month that the probability of approval for Ethereum spot ETFs in 2024 is less than 50%. Similarly, JPMorgan analyst Nikolaos Panigirtzoglou believes that the probability of the SEC recognizing Ethereum as a commodity rather than a security before May is less than 50%.
In January, Fox Business reporter Eleanor Terrett quoted insiders as saying that the SEC’s current position leans towards “forceful rejection.”
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