SEC Chair Gary Gensler announced that the commission intends to accept the spot Ethereum ETF applicants’ S-1 registration forms “sometime over this summer.” This would be the final hurdle for ETFs before they can start in the United States.
Will Ether ETFs Start Trading by September
On May 23, the Securities and Exchange Commission approved eight 19b-4 registrations to list spot Ether exchange-traded funds on various US exchanges. The funds can’t start trading until they get the necessary S-1 registration statement approvals.
Ethereum ETF Approval Hopes for August, Bitcoin Struggles ContinueGary Gensler Statements About ETFs Approval
According to Gensler, the applicants’ S-1 registration statements will most likely be granted this summer, allowing the spot ether ETFs to go live in the United States immediately. Spot Ethereum ETFs offer regulated, easy-to-trade exposure to ether through firms like BlackRock and Ark.
Also, Gensler stated during a Senate hearing on June 13 that:
Individual issuers are still working through the registration process. That’s working smoothly.
Concerns on Budget Allocation
During the budget hearing, Gensler expressed concern about the fiscal 2025 House Appropriations bill that prohibits funding for digital asset enforcement except in market manipulation cases. He cautioned that this restriction would greatly limit the SEC’s capacity to oversee the cryptocurrency sector properly.
Gensler stated that:
It would seriously undercut our efforts. While not all cryptos are crypto securities… those that are have an obligation to disclose to the public full, fair, and complete information.
He also stated that the SEC regulates nearly 40,000 companies, including over 13,000 registered funds, 15,400 investment advisors, and 3,300 broker-dealers.
Discussions in Budget Hearing
During the budget hearing, Gary Gensler stated that the last batch of files, known as S-1s or registration of securities, had reached staff review. Last month, the commission accepted proposed rule modifications to list spot ETH ETFs, commonly known as 19b-4.
Although the agency’s senior official acknowledged that Ethereum ETFs will likely begin trading shortly, Gensler’s ambiguous position on Ether’s asset designation persisted. The SEC chair declined to state whether the largest decentralized native cryptocurrency is a commodity or a security.
