SEC Chair Gary Gensler’s Approach to Ethereum ETFs
Securities and Exchange Commission (SEC) Chair Gary Gensler has chosen to withhold details regarding spot Ethereum (ETH) exchange-traded funds (ETFs). When asked about the potential approval and timeline, Gensler indicated that the process for Ethereum ETFs would parallel that of Bitcoin (BTC) ETFs, but refrained from divulging specific information.
The SEC recently postponed its decision on the Invesco Galaxy Ethereum ETF, following a previous delay in December concerning Invesco’s ETF application. Additionally, the SEC has deferred decisions on other Ethereum ETF applications from major firms such as Grayscale, Fidelity, and BlackRock, as well as from VanEck and Hashdex, with Franklin Templeton being the latest asset manager to file a spot Ethereum ETF application.
Gensler’s Perspective on Bitcoin and Spot ETFs
Gensler also expressed caution regarding the approval of Bitcoin ETFs, emphasizing that the SEC’s decision did not reflect a change in its perspective on the risks associated with Bitcoin but was rather a response to a court ruling in the Grayscale v. SEC case. The court ruled that the SEC had “failed to reasonably explain” its previous approval of Bitcoin futures products but not spot ETFs.
Gensler voiced concerns about Bitcoin’s association with illicit activities and the lack of oversight in crypto exchanges, highlighting the prevalence of fraud and manipulation within the industry.
Renewed Interest in Ethereum Staking
Despite the uncertainty surrounding Ethereum ETFs, the Ethereum network is witnessing a surge in the number of validators seeking to stake their ETH. The current validator entry queue stands at 7,045, representing over 225,000 Ether, its highest level since October 2023. Due to Ethereum’s limitations on the number of new validators that can join the network per epoch, a backlog occurs as more entities seek to participate.
Validators stake a minimum of 32 Ether in the network and receive a steady rate of return, similar to interest income from fixed-income instruments, for participating in running Ethereum’s proof-of-stake consensus blockchain.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
