SEC Chair Gensler: Spot Ether ETFs 'Will Take Some Time' to Begin Trading

U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler has stated that spot ethereum exchange-traded funds (ETFs) “will take some time” to commence trading, highlighting the necessity for a thorough disclosure process. Additionally, Gensler emphasized the lack of proper disclosure provided by crypto exchanges to investors.

Spot Ether ETFs ‘Will Take Some Time’

The chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, addressed several issues, including compliance challenges in the cryptocurrency industry and the approval of spot ethereum exchange-traded funds (ETFs) in an interview with CNBC on Wednesday.

“In January, we approved an exchange-traded product on bitcoin, and about a week and a half ago, similar filings to list on the New York Stock exchange, list on Nasdaq, and the like, exchange-traded products on ethereum,” Gensler said. “Ethereum had been traded on the Chicago Mercantile Exchange [CME] futures for three plus years and the staff looked at that closely and that was approved .” The SEC chief added:

Now the underlying exchange-traded products still need to go through a process to have the disclosure about that. That will take some time but they’re working on that right now.

Last month, the SEC approved Form 19b-4 filings for eight spot ether ETFs. Nonetheless, the funds’ S-1 filings (registration statements) must also receive approval before they can commence trading.

During the interview on Wednesday, Gensler also raised concerns about the crypto sector’s lack of compliance and proper disclosure. “In the crypto markets, they aren’t giving you that disclosure,” he stressed, emphasizing that crypto exchanges must be “regulated to prevent fraud and manipulation,” and must ensure “they don’t trade against you.” Gensler cautioned:

These crypto exchanges … are doing things we would never allow this New York Stock Exchange to do. Our laws don’t allow you to trade against your customers.

“And so you’ve seen the bankruptcies in this space, and … some of the most leading lights in this field are either in jail about to go to jail or waiting extradition,” the SEC chairman concluded.

What do you think about SEC Chair Gary Gensler’s statements regarding spot ether ETFs and the issues surrounding the crypto industry? Let us know in the comments section below. #Write2Earn