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Approval for Ethereum or XRP ETF Hangs on the Balance: Here’s Why

Published 11/01/2024, 17:12
Updated 11/01/2024, 17:15
© Reuters Approval for Ethereum or XRP ETF Hangs on the Balance: Here’s Why
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Coin Edition -

  • Only three SEC commissioners voted yes for the Bitcoin ETF, and among them was Gary Gensler.
  • Lawyer Bill Morgan argued that the fate of any crypto ETF rests on Gensler.
  • The SEC chair admitted consenting to an approval amid the legal setback last year.

Although the U.S. regulator has authorized the crypto spot exchange-traded fund (ETF) for Bitcoin, the prospect of additional crypto ETFs still appears uncertain. Prominent pro-crypto lawyer Bill Morgan called attention to this uncertainty in a recent statement on X.

In the post, Morgan highlighted the divide in the U.S. Securities and Exchange Commission (SEC) leadership that voted for Bitcoin spot ETFs to be approved. Specifically, of the five SEC commissioners, three voted yes, and among them was Gary Gensler, the SEC chair notorious for his unfriendly crypto stance.

Essentially, the lawyer emphasized that the fate of any crypto ETF rests on Gensler’s vote. “You need a vote from Gary Gensler to approve a spot Ethereum or XRP ETF. Let that sink in,” Morgan remarked.

Furthermore, a notable on-chain sleuth, Mr. Huber, argued that the SEC chairman had even voted for the approval “very reluctantly,” having experienced legal setbacks. Mr. Huber pointed out that the other two commissioners who voted no held on to their positions even with legal rulings against their positions.

Notably, the SEC chairman himself affirmed the accuracy of Mr. Huber’s view. In a statement yesterday, the SEC chair acknowledged that the agency’s defeat in the court battle with Grayscale last year was part of the foundation for the approved Bitcoin spot ETFs. In Gensler’s words:

“The Commission failed to adequately explain its reasoning in disapproving the listing and trading of Grayscale’s proposed ETP. Based on these circumstances, I feel the most sustainable path forward is to approve the listing and trading of these spot bitcoin ETP shares.”

Notably, the SEC is set to announce its decision on Ethereum spot ETFs in May 2024. Although there is currently no official XRP spot ETF application submitted to the SEC, there is a prevailing belief within the crypto community that an XRP exchange-traded fund is inevitable.

The post Approval for Ethereum or XRP ETF Hangs on the Balance: Here’s Why appeared first on Coin Edition.

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