Bitcoin Spot ETFs Greenlit, Gensler’s Remarks Leave Investors Guessing on Ethereum ETF Hopes ⋆ ZyCrypto

In a month marked by the historic approval and listing of 11 spot Bitcoin ETFs, anticipation within the Ethereum community has risen regarding the potential approval of a spot ETH ETF. However, Securities and Exchange Commission (SEC) Chair Gary Gensler has provided little clarity on the prospects of such an approval.

During an interview with CNBC, Gensler refrained from offering substantial encouragement when questioned about the likelihood of a spot Ethereum ETF gaining SEC approval in the near future.

While discussing the recent developments, Gensler emphasized the SEC’s approval of spot Bitcoin ETFs, drawing a comparison to previously approved commodity-based exchange-traded products.

Gensler declined to provide further insights into the status of an Ethereum ETF specifically. Notably, his choice of words, highlighting Bitcoin as a non-security commodity, suggests a potential distinction between Bitcoin’s status and the prospective status of other cryptocurrencies, including Ethereum.

Ethereum’s Regulatory Quandary Still a Puzzle

For years, Gensler has consistently expressed his view that Bitcoin is the only cryptocurrency definitively categorized as a commodity, placing it outside the SEC’s regulatory purview.

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While the SEC has not officially declared Ethereum’s security status, previous legal filings indicate the agency’s consideration of Ethereum transactions falling under its jurisdiction.

The potential classification of Ethereum as a security could present regulatory challenges for a spot Ethereum ETF, potentially exceeding the scrutiny faced by a Bitcoin ETF. 

Gensler’s statements come amid changing circumstances and legal judgments, such as the court order in October compelling the SEC to review Grayscale’s Bitcoin ETF application.

The court’s decision, which forced the SEC to approve a Bitcoin futures ETF application, also approved an Ethereum futures ETF in the same month, possibly setting the stage for a parallel legal scenario. 

The unfolding developments surrounding Bitcoin spot ETFs and Gensler’s cautious remarks continue to leave investors in suspense regarding the fate of Ethereum ETF aspirations.