The crypto community is eagerly awaiting the debut of the American Ethereum (ETH) spot Exchange-Traded Funds (ETFs). Exactly two weeks ago, the American Securities and Exchange Commission (SEC) approved a laundry list of 19b-4 applications, but we now have to wait until the S-1 applications also receive the green light. According to SEC Chairman Gary Gensler, this will “take some time.”

Delay in launching ETH funds?

Thursday, May 23 is the historic day when the SEC approved all eight Ethereum ETF applications, from Wall Street giants such as BlackRock and Fidelity, among others. However, the funds do not yet have permission to be launched. This will first require greenlighting the associated S-1 forms, which contain details of the funds’ structure, objectives and operational aspects.

Only after approval of these forms can the funds actually start. When exactly this will happen is still a big question mark. In any case, it keeps people busy in the crypto country.

Gensler joined CNBC yesterday and indicated that the next steps for the approval of Ethereum ETFs “will take some time,” suggesting the commission may be slowing down in approving the S-1 registration statements.

While it was initially thought that the regulator seemed to be aiming for a quick launch. After BlackRock was the first to file a revised S-1 filing last week, the SEC had already set a Friday deadline for the other ETF issuers to do the same.

Last week, Bloomberg ETF analyst Eric Balchunas shared his expectation that the ETH funds will be launched at the end of this month or early next month. For many, the stock market entry cannot come soon enough, with the success of the American Bitcoin (BTC) ETFs in mind.

Strict approach against crypto companies

Gensler also said in the interview that the commission under his leadership will continue to enforce strict enforcement against crypto companies that violate the rules, even if the platforms disclose the risks of their products to retail investors.

Gensler also indicated that most crypto companies are still not making any disclosures at all. He said that crypto exchanges have long operated in ways that would never be allowed in traditional financial markets.

The financial watchdog has for some time, to the criticism of many in the crypto world, preferred a tough approach to essentially crush the industry. Large crypto companies such as Ripple, Coinbase, Binance and Kraken have all fallen victim to this with lawsuits filed.

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