Key Points
- SEC Chair Gary Gensler’s comments have sparked speculation about the approval process for Ethereum ETFs.
- His remarks have caused fluctuations in Ethereum’s price and may have been influenced by Grayscale’s legal challenge.
SEC Chair Gary Gensler’s recent comments have stirred speculation within the cryptocurrency community.
As reported by Reuters, Gensler suggested that the approval of spot Ethereum (ETH) exchange-traded funds (ETFs) in the U.S. depends on how responsive issuers are to the SEC’s feedback.
Gensler’s Remarks
Gensler stated, “These registrants are self-motivated to be responsive to the comments they get, but it’s really up to them how responsive they are.”
This comment has sparked optimism among those who were concerned about potential delays, hinting that the SEC might be moving towards a faster review process.
However, in a separate conversation with CNBC Squawk Box, Gensler noted that the underlying exchange trade products still need to go through a disclosure process, which could take some time.
Market Reactions and Influences
These contrasting statements have led to noticeable fluctuations in Ethereum’s prices.
At the time of writing, Ethereum was trading at $3,819.16, reflecting a 0.70% drop in the past 24 hours.
The technical indicator Relative Strength Index (RSI) remained above the 50 mark, indicating significant buying pressure.
The SEC’s shift in tone regarding spot Ether ETFs remains unexplained.
However, Gensler hinted in discussions with Reuters that this decision might have been influenced by Grayscale’s legal challenge related to Bitcoin ETFs from the previous year.
Grayscale had argued that since the SEC approved Bitcoin futures ETFs, there was no reason to deny spot Bitcoin ETFs. Gensler suggested that the situation was similar with Ethereum, as Ethereum futures have been trading since last year.
