Investment firms expecting to launch the first exchange-traded funds (ETFs) based on the Ethereum cryptocurrency may be disappointed, as the U.S. Securities and Exchange Commission (SEC) has not indicated that it is ready to approve such products, according to Bloomberg. SEC Chairman Gary Gensler has hinted that a feature of the Ethereum software, known as “staking,” could cause Ethereum to fall under the SEC’s jurisdiction as a securities regulator. Such a decision would trigger a raft of compliance and investor protection rules that many in the crypto industry believe are inappropriate for digital assets. It is unclear whether the ETF decision will provide insight into the SEC’s view on Ethereum’s staking mechanism. Regardless of whether the fund is approved, this will be the first time the SEC has publicly provided substantive insights into its position on a spot Ethereum ETF. Even among issuers who do not expect the regulator to approve the product, this is a ray of hope for some, as it will provide substantive insights into the regulator’s thinking about these products.