SEC’s Gary Gensler Clarifies: Bitcoin ETF Nod Doesn’t Guarantee Ethereum ETF Approval

The post SEC’s Gary Gensler Clarifies: Bitcoin ETF Nod Doesn’t Guarantee Ethereum ETF Approval appeared first on Coinpedia Fintech News

Gary Gensler is in the headlines almost daily and seems neck-deep in legal scoops and negative criticism of his leadership. SEC Chair Gary Gensler offered no new details on Ether ETF applications during a CNBC interview, maintaining the same procedural approach as Bitcoin ETFs.

The SEC’s delay on multiple Ethereum ETF decisions underscores ongoing regulatory caution. His stance has started a fresh debate on the SEC’s way of denial, delay, and final acceptance. 

With growing speculation around an Ethereum ETF, it’s evident that the SEC is more involved in ETH than it appears. Meanwhile, Larry Fink and Cathie Wood have stated they think it’s happening. Franklin Templeton is making a new filing this week, alongside existing ones from BlackRock, Fidelity, Ark, Grayscale, VanEck, Invesco, and Galaxy. 

However, Gensler underlined that the SEC’s stance was based on merit and that accepting Bitcoin ETFs was limited to a certain set of filings and did not mean that Bitcoin itself was supported. He clarified that the SEC will not cherry-pick any cryptocurrency and said the choices will be based on following the rules and regulations.

The SEC’s recent approvals of Bitcoin ETFs have garnered interest from major financial firms like Franklin Templeton, Fidelity, and BlackRock, all of which have filed applications for Ethereum ETFs. While the approval of Bitcoin ETFs fuels their optimism, Gensler’s remarks suggest that each submission will undergo its rigorous evaluation process.

Market sentiment regarding the approval of Ethereum ETFs is divided. Grayscale, Bitwise, and Galaxy Digital executives predict Ethereum spot ETF approval to climb to 75% by year-end, with Bitwise CIO Matt Hougan expecting 50% by May. While others urge caution due to the SEC’s thorough regulatory scrutiny and strict requirements for Ethereum ETF.

According to Bloomberg analyst James Seyffart, the SEC’s delay on Invesco US and Galaxy Ethereum ETF suggests more delays are likely in the coming months. “The only date that matters for spot Ethereum ETFs at this time is May 23rd. Which is VanEck’s final deadline date.” 

The SEC’s stance on cryptocurrency ETFs influences digital asset adoption and institutionalization. While the approval of Bitcoin ETFs has opened doors, Ethereum and other crypto exchanges are at a crossroads with the SEC to approve ETH ETFs based on tight regulations.

Meanwhile, Ethereum’s price may rise further due to whale accumulation as the U.S. SEC decides on ETF clearance in May. Analyst predictions vary, with some expecting a potential Ether ETF approval in 2024, reflecting the complex landscape of cryptocurrency regulation and market anticipation.