Contents
Toggle
Gary Gensler to be the key vote?
Initial approval
According to the experience of previous Bitcoin ETFs, Gary Gensler, the Chairman of the U.S. Securities and Exchange Commission (SEC), may participate in the vote for an Ethereum spot ETF this week.
In January of this year, the approval of the Bitcoin spot ETF was handled by a panel of five commissioners, including two crypto-friendly commissioners, Hester Pierce and Mark Uyeda, as well as two commissioners who voted against it, Caroline Crenshaw and Jaime Lizárraga. The final vote was cast by SEC Chairman Gary Gensler, and the Bitcoin ETF was ultimately approved with his crucial approval.
These five SEC commissioners will vote on May 23rd, the “final decision day,” to approve or reject VanEck’s Ethereum spot ETF. However, based on Gary Gensler’s previous interviews, it appears that the approval of an Ether ETF will be quite challenging.
Nate Geraci, President of ETF Store, commented today on the SEC’s “Ether spot ETF decision” this week. He stated that the SEC must approve both 19b-4s (exchange rule changes) and S-1 (registration statement) for an ETF to truly go live. However, based on the SEC’s involvement with the Ether ETF, the institution may choose to approve the 19b-4s first and then slow down the approval process for the S-1 (especially considering the lack of participation).
19b-4s (exchange rule changes) refers to the documents submitted by national securities exchanges, such as the New York Stock Exchange or NASDAQ, to the SEC when they want to change rules or introduce new products. In the case of an Ethereum ETF, the exchange needs SEC approval for these documents in order to list the ETF. Essentially, this is a “request for permission from the exchange to add these new Ether products to its trading platform.”
S-1s (registration statements) are the initial registration forms required for the “public offering of new securities,” providing detailed information to the SEC and potential investors about the company’s business operations, financial condition, and management. For an ETF, this document will outline the fund’s structure, management, and how it intends to track the performance of Ether prices.
The SEC must approve both 19b-4s and S-1s for an ETF to be legally sold to the public. In simple terms, if the SEC approves rule 19b-4s but does not approve the S-1, it means that “the ETF can be listed on the exchange, but it cannot be legally sold to investors.”
