The U.S. Securities and Exchange Commission Chair, Gary Gensler, recently clarified that the approval of spot Bitcoin ETFs is limited to Bitcoin alone. Following the Bitcoin ETF approval, wild anticipations have arisen in hopes of spotting Ethereum ETFs. However, Gensler emphasized that the current focus is only on Bitcoin ETFs.
Gensler’s Perspective
Gary Gensler emphasized that the approval of Bitcoin ETFs doesn’t extend to the approval of other cryptocurrency ETFs like Ethereum. He affirmed that the improved disclosure and competition in the Bitcoin ETF market had benefited investors with lower fees.
“As I said two weeks ago, what we did about bitcoin exchange-traded products is cabined to this one commodity non-security and shouldn’t be read to be anything other than that.” … “You’ve seen some competition in which investors benefited from lower fees.”
However, Gensler didn’t fail to urge investors interested in crypto securities again to be cautious of investing in the Bitcoin ETF market.
The SEC is engaged in legal battles with major crypto firms such as Binance, Coinbase, and Ripple. When asked, Gensler stopped commenting on the Commission’s ongoing court hearings.
Ethereum ETF Decision Delay
Following the media disclosure of Gensler, a court filing from the SEC on Wednesday announced the delay of its decision timeline on BlackRock’s proposal for a spot Ethereum exchange-traded fund to March.
The filing revealed that the Nasdaq Stock Market filed a proposed rule change to list and trade shares of the iShares Ethereum Trust. For such a proposed rule change, the SEC is authorized to take 45-90 days to announce its decision.
Hence, because of this need for sufficient time to consider the proposed rule change and related issues, the SEC has decided to extend the decision deadline to March 10, 2024.
Quoting Brad Garlinghouse: “The sad part of that reality is we have a Bitcoin ETF only because a US court said to the SEC “You’re being arbitrary and capricious in your apply of your application of the law”… What would be sad is if every ETF had to go through that same journey.”