SEC Chair Gensler confirms spot Ethereum ETFs to be approved this summer
SEC Chairman Gary Gensler has indicated the agency anticipates sanctioning the Spot Ethereum ETF applications' S-1 registration documents "during this upcoming summer," marking the conclusive move before these funds can be introduced in the United States.
Gensler assured that the ETFs are on track for a launch by the summer's end, comfortably ahead of the presidential elections in November.
The regulatory body has recently greenlit the corresponding 19b-4 submissions by stock exchanges in May. Nonetheless, the final nod for S-1 forms from specific issuers is yet to be given.
In a pronounced statement at a Senate hearing on June 13, Gensler noted that the process for individual issuers' registration is progressing well and without a hitch.
Senator Bill Hagerty acclaimed Gensler for his promise to have the applications cleared by summer's conclusion. He underscored that this market needs to be advanced.
Expected timeline and the classification as a commodity
The timeline Gensler provided is in harmony with recent forecasts by industry pundits.
Experts at Bloomberg on ETFs have hinted that the endorsement of S-1 documents could span "weeks" to "months" following the acknowledgments of 19b-4. Likewise, entities like JP Morgan anticipate the ETFs' trading commencement prior to the November electoral process.
Despite awaiting S-1 document approval, the debut of Spot Ethereum ETFs in the U.S. is regarded as a sure event. Moreover, Ethereum is now deemed a commodity by numerous industry and legal authorities, who assert that the SEC's sanctioning of Ethereum as a single-asset ETF product signifies its commodity status.
Yet, upon Senate's inquiry, Gensler avoided confirming whether Ethereum falls under the security or commodity category. He circled around the question, revealing that the Ethereum ETFs had only received "partial" approval.
Conversely, CFTC Chairman Rostin Behnam unequivocally informed the Senate that Ethereum categorizes as a commodity and thus, falls under his commission's jurisdiction.
