SEC Chairman Gensler Predicts Approval of ETH Spot ETF S-1 by End of Summer

Prospective spot Ethereum ETF issuers are awaiting the SEC’s comments on their S-1 filings, submitted on May 31. However, their wait might soon end. Reports suggest that SEC Chair Gary Gensler confirmed a potential approval of the S-1 filings for spot Ethereum by the end of summer, likely between June and August.

SEC Chair Teases S-1 Approval

In a recent update regarding spot Ethereum ETF, SEC Chair Gary Gensler hinted at a potential timeline for its approval. According to Fox reporter Eleanor Terrett, Gensler conveyed to Senator Bill Hagerty his expectation that the approval process for the ETF’s S-1 filing could conclude by the end of this summer.

The SEC’s recent approval of 19b-4 forms for various Ethereum ETF issuers, such as VanEck and BlackRock, indicates a surge in crypto adoption. However, the S1 forms, necessitating comprehensive ETF details, are pending approval.

Anticipating feedback from the SEC, issuers previously expected comments on their drafts by June 7, as per insights from a source familiar with agency discussions. However, the issuers are still awaiting feedback, with expectations now set for the summer end. According to SEC Chair Gary Gensler’s statement on CNBC, approvals for the S-1 forms would require a considerable duration. However, it is expected that a final approval might come between June and August.

The S-1 forms represent the second phase in the two-step process to enable the spot Ethereum ETFs for trading. The initial step involved the approval of the 19b-4 forms, which occurred on May 23rd.

The preliminary filings disclose some key details: BlackRock is initiating its ETF with a $10 million seed, while Franklin Templeton seeks to begin trading with a 0.19% fee.

Spot ETH ETF Might Attract Bitcoin’s Inflow

Hagerty criticized Gensler’s rule-making for the crypto market, expressing concern that the agency’s “roadblocks” were prompting U.S. companies to relocate abroad. He stated, “You’re not prioritizing rule-making for areas that desperately need it,” pointing out the necessity of establishing a constructive framework.

When someone today asked Gensler if ETH is a commodity, he didn’t give a clear yes or no. Instead, he kept to the unsure stance his agency has taken on the asset. During the same meeting, when asked if it’s a commodity, the head of the Commodity Futures Trading Commission, Rostin Behnam, said, “Yes.”

As the spot Ethereum ETFs enter the market, an important question comes up: Can they do as well as the Bitcoin ETFs? Jag Kooner from Bitfinex thinks they might get around 10-20% of the money that goes into Bitcoin ETFs.

The Bitfinex analyst talked about how fund managers move money between different ETFs to manage their risks. He said, “When gold ETFs first came out, they got a lot of money. This affected other financial products linked to gold. The same might happen with Ethereum ETFs. Fund managers might change how much money they put into both bitcoin and Ethereum.”

Also Read: Ethereum Is Mirroring Bitcoin’s Price Action: Is This a Good News or Bad News?