Gary Gensler, Chairman of the U.S. Securities and Exchange Commission (SEC), reiterated during an interview on Wednesday that the approval of a Bitcoin spot ETF in January does not imply approval for other cryptocurrency-based ETFs, such as several Ethereum spot ETFs awaiting SEC approval.
During the interview, Gensler stated, “We have similar products, including ETFs for gold and silver. Technically, they are exchange-traded products (ETPs). We approved around 11 issuers for Bitcoin spot ETFs, but this is not the first way to purchase Bitcoin or express Bitcoin risk.”
The SEC Chairman also reiterated his position that most cryptocurrencies are unregistered securities and emphasized the agency’s responsibility to protect investors from fraud and market manipulation. He stated, “We have an investor education responsibility at the SEC, particularly for those investments that don’t fit within securities law or other commodity laws. We have 15 to 20,000 different asset categories of crypto tokens, 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 be approved. In recent months, major asset management firms such as BlackRock and Fidelity have submitted applications for Ethereum spot ETFs to the SEC.
When asked about whether the SEC would approve Ethereum spot ETF applications, the SEC Chairman responded cautiously. It is worth noting that the SEC has already postponed decisions on several Ethereum spot ETFs this year. Gensler previously stated that the approval of Bitcoin should not be seen as support for other cryptocurrencies and that Bitcoin should be viewed as a non-security commodity.
Opinions within the cryptocurrency and financial industry regarding the potential approval of Ethereum spot ETFs remain divided. Bloomberg ETF analyst Eric Balchunas expressed optimism in January, predicting a 70% chance of SEC approval in May. Geoffrey Kendrick, Head of Foreign Exchange at Standard Chartered, predicted in a report that Ethereum spot ETFs would be approved for listing on May 23.
However, several institutions hold a pessimistic view of the SEC’s approval this year. Mark Yusko, Founder and CEO of Morgan Creek Capital, predicted last month that the probability of Ethereum spot ETF approval in 2024 is less than 50%. Similarly, JPMorgan analyst Nikolaos Panigirtzoglou believes that the likelihood of the SEC recognizing Ethereum as a commodity rather than a security before May is less than 50%.
Fox Business reporter Eleanor Terrett quoted insiders in January, revealing that the SEC’s current stance leans towards “forceful rejection.”
Related Reports:
Bankless: When Will Ethereum Spot ETFs Be Approved?
Probability of Ethereum Spot ETF Approval this Year is Less Than 50%! Morgan Creek Capital: SEC Still Considers ETH as a Security
When Will Ethereum Spot ETFs Be Approved? 52% Favorability by End of 2024; TD Cowen, JPMorgan: Not Approving Soon
SEC Questions Ethereum’s “Centralization” in PoS! Further Delay in Grayscale ETHE’s Transition to Spot ETF.