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The entry of spot Ethereum (ETH) ETFs into the market may take longer than initially anticipated, as indicated by Gary Gensler, chairman of the US Securities and Exchange Commission (SEC).

In an appearance on CNBC on June 6, Gensler stated that “it will take some time” for the agency to approve the S-1 registration statements of ETH ETF applicants.

Passage of S-1 forms is the last hurdle preventing the funds from operating, even after the SEC approved the 19b-4 filings on May 23. Despite this, Gensler has provided no assurance that the S-1 filings will be approved.

“O Ethereum [futuros] has been trading on the Chicago Mercantile Exchange for more than three years. And the team looked at that closely,” Gensler said.

Furthermore, he highlighted that the underlying exchange-traded products still need to go through a disclosure process. And this process will take some time.

These comments suggest that some predictions may have been overly optimistic. Bloomberg ETF analyst Eric Balchunas, for example, had recently predicted that ETH ETFs could hit the market in early July.

On the other hand, Nate Geraci, co-founder of the ETF Institute, suggested that it could take up to three months for these ETFs to open trading.

Approval of Ethereum ETFs

The SEC’s preliminary approval in May came as a shock to many analysts and traders. For months, they anticipated a rejection of the funds, citing the SEC’s lack of cooperation in meetings with applicants.

Since Gensler’s appointment in 2021, the SEC has maintained a strict stance toward the web3 industry. This includes efforts to classify Ethereum as a securities asset. Despite approving 19b-4 filings for ETH ETFs, Gensler criticized digital asset markets for failing to maintain adequate disclosure and transparency.

“These tokens… have not provided the disclosures necessary for their investment decisions and that the law requires,” Gensler told CNBC. He also accused cryptocurrency exchanges of not complying with the same regulations as conventional asset platforms and of actively trading against their users.

Gensler also reinforced the need for regulation to protect investors against fraud and manipulation. He compared the current situation to the practices of the New York Stock Exchange, which does not allow trading against its clients.

The SEC has already filed charges against several major cryptocurrency exchanges, including Coinbase, Binance, and Kraken.

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