Spot ethereum exchange-traded funds (ETFs) will not be available for trading in the near future, according to the U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler. In an interview with CNBC, Gensler stressed the need for a thorough disclosure process before these ETFs can be approved. He also highlighted the lack of proper disclosure provided by crypto exchanges to investors.
Speaking about the approval process, Gensler mentioned that the SEC had previously approved an exchange-traded product for bitcoin in January. Recently, filings were made to list exchange-traded products for ethereum on the New York Stock Exchange and Nasdaq. Gensler noted that ethereum had been traded on the Chicago Mercantile Exchange futures for over three years, and after careful consideration, it was approved. However, the underlying exchange-traded products for ethereum still need to go through a disclosure process before they can begin trading, which will take time.
The SEC approved Form 19b-4 filings for eight spot ether ETFs last month. However, the S-1 filings (registration statements) for these funds must also receive approval before trading can commence.
During the interview, Gensler expressed concerns about the lack of compliance and proper disclosure in the crypto industry. He emphasized the need for regulation to prevent fraud and manipulation by crypto exchanges, stating that they should not be allowed to trade against their customers. Gensler pointed out that certain individuals in the crypto industry have faced bankruptcy, legal trouble, or extradition due to their actions.
In conclusion, Gensler’s remarks shed light on the challenges surrounding spot ether ETFs and the need for transparency and regulation in the crypto industry.
