Ethereum
SEC Chairman Gensler Predicts ETH Spot ETF S-1 Approval by Late Summer
Possible Ethereum Spot ETF Issuers are awaiting comments from the SEC on their S-1 filings, filed May 31. However, their wait may soon end. Reports suggest that SEC Chairman Gary Gensler has confirmed a potential approval of S-1 filings for the Ethereum spot by the end of summer, likely between June and August.
SEC Chairman Teases S-1 Approval
In a recent update regarding the Ethereum Spot ETF, SEC Chairman Gary Gensler hinted at a potential timeline for its approval. According to Fox reporter Eleanor Terrett, Gensler expressed 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 Recent SEC Approval of Forms 19b-4 for various Ethereum ETF issuers, such as VanEck and BlackRock, indicates an increase in crypto adoption. However, the S1 forms, requiring full ETF details, are awaiting approval.
Anticipating comments from the SEC, issuers previously expected comments on their plans by June 7, according to information from a source familiar with the agency’s discussions. However, issuers are still awaiting returns, with expectations now set for late summer. According to Gary Gensler, SEC Chairman statement on CNBC, approvals for S-1 forms would require considerable time. However, final approval is expected to come between June and August.
S-1 forms represent the second phase of the two-step process for trading Ethereum spot ETFs. The first step involved the approval of Forms 19b-4, which took place on May 23.
Preliminary filings reveal some key details: BlackRock is launching its ETF with an initial $10 million, while Franklin Templeton is looking to start trading with a 0.19% fee.
Spot ETH ETF Could Attract Bitcoin Influx
Hagerty criticized Gensler’s rulemaking for the crypto market, expressing concern that the agency’s “barriers” are incentivizing U.S. companies to relocate overseas. He said: “You are not prioritizing rule-making in areas that desperately need it,” emphasizing the need to establish a constructive framework.
Today, when someone asked Gensler if ETH was a commodity, he didn’t give a clear yes or no. Instead, he maintained the uncertain stance his agency took toward the asset. During the same meeting, when asked if it was a commodity, Commodity Futures Trading Commission head Rostin Behnam replied: “Yes.”
As Ethereum spot ETFs enter the market, an important question arises: can they perform as well as Bitcoin ETFs? Jag Kooner of Bitfinex thinks they could get around 10-20% of the money invested in Bitcoin ETFs.
The Bitfinex analyst explained how fund managers move money between different ETFs to manage their risks. He said: “When gold ETFs first came along, they got a lot of money. This affected other financial products linked to gold. The same could happen with Ethereum ETFs. Fund managers could change the amount they invest in Bitcoin and Ethereum.
Read also: Ethereum mirrors Bitcoin price action: is this good news or bad news?