Gary Gensler bypassed as SEC approves Spot Ether ETFs without requiring his vote
The Securities and Exchange Commission (SEC) of the United States has given its approval for spot Ether exchange-traded funds (ETFs) on May 23. However, the approval process for spot Ether ETFs differed from that of spot Bitcoin ETFs, which were approved earlier in January.
Unlike the spot Bitcoin ETFs, which were approved by a vote from a committee consisting of five members, including SEC chief Gary Gensler, the spot Ether ETFs received approval from the SEC’s Trading and Markets Division.
Various major financial firms, including BlackRock, Fidelity, Grayscale, Bitwise, VanEck, Ark, Invesco Galaxy, and Franklin Templeton, had their 19b-4 filings approved by the SEC. However, the SEC did not provide any additional comments beyond the official decision, as stated in the filing: “For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.”
While many in the cryptocurrency community were puzzled by the difference in the clearance process for the two crypto ETFs, Bloomberg ETF analyst James Seyffart justified that it was a normal procedure. He explained that many approvals are typically handled in a similar manner, and it would be impractical for the SEC to hold an official vote for every decision or document. Seyffart also mentioned that it would have been interesting to see the political alignments if there had been a vote.
However, despite Seyffart’s explanation, some individuals remain doubtful. One user on X highlighted the possibility of a commissioner challenging the decision within the next 10 days, indicating that the delegated authority could be used to hide politically sensitive votes. Another X user speculated that the SEC’s decision might be influenced by factors such as political pressure, upcoming elections, and the implementation of environmental, social, and governance (ESG) rules.
The crypto industry celebrated the SEC’s approval of spot Ether ETFs, considering it a significant milestone. Although the 19b-4 forms have been approved, the S-1 registration statements still need to be processed before trading can commence. This implies that the launch of spot Ether ETFs on exchanges could still be several weeks or even months away, as the issuers await the SEC’s approval of the S-1 registrations.
