- SEC Chair Gary Gensler has offered a timeline for the launch of spot Ethereum ETFs.
- The recent statement follows a suggestion over a week ago that full spot Ethereum ETF approvals could “take a while.”
- Gensler again deflected questions on Ethereum’s classification status.
At the end of May 2024, the U.S. SEC took the crypto community by surprise by greenlighting, in part, spot Ethereum ETF applications.
Following the landmark decision, the pressing question has become when the final round of documents, called S-1 filings, will be approved, clearing the path for these products to begin trading and offering a familiar on-ramp for trillions in institutional capital to flow into the second-largest crypto asset by market cap.
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Amid the speculation, a recent statement from SEC Chair Gary Gensler has shed light on the situation. During a recent senate hearing, the regulator offered a timeline for when spot Ethereum ETFs will likely begin trading.
A Summer to Remember for Ethereum?
When asked by Senator Bill Hagerty when spot Ethereum ETFs were likely to go live for trading during a Thursday, June 13 hearing on the SEC’s 2025 budget, Gensler suggested that full approvals could come during the summer.
"I would envision sometime over the course of this summer," he asserted.
The statement comes just over a week after he told CNBC that the decision on S-1 filings was likely to “take some time.”
However, in statements to Senators during the Thursday hearing, the SEC Chair suggested that things were moving without any hiccups.
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"Individual issuers still are working through the registration process. That’s working smoothly," he stressed.
While Gensler appeared confident about the status of spot Ethereum ETF applications, Ethereum’s asset classification remains an entirely different matter.
Ethereum Not Yet Out of the Woods?
When asked by Hagerty whether Ethereum is a commodity, Gensler, in typical fashion, failed to offer a clear-cut answer before going on to emphasize his stance that most crypto assets, in his view, were unregistered securities that should be under the purview of the SEC.
Gensler’s statements cast doubt on the growing belief that the SEC’s approval of spot ETFs confirmed Ethereum’s status as a commodity in the eyes of the market regulator, which reportedly has an over-year-long probe into the asset’s status.
The SEC’s stance on Ethereum’s asset classification is important as it could determine whether the asset is placed under stricter regulations in the U.S., which could affect the ease of trading and investment.
Interestingly, during Thursday’s hearing, CFTC Chair Roslin Behnam answered with a simple “yes” when asked whether Ethereum was a commodity.
On the Flipside
- The exact date when spot Ethereum ETFs will go live for trading remains anyone’s guess.
- Experts believe that Ethereum ETFs are unlikely to match their Bitcoin counterparts in terms of inflows.
Why This Matters
For most market participants, the launch of Ethereum ETFs is likely to be a bullish market event. Gensler’s statements help provide a timeline for these crypto proponents to look forward to.
Read this for more on Ethereum:
Why Ethereum’s Price Could Hit $22K by 2030 According to VanEck
Learn about the potential intermediate step Polygon could take in its journey to becoming a ZK Ethereum Layer 2:
Polygon Mulls Intermediate L2 Transition Step: What To Expect
