The Future of Spot Ether ETFs: SEC Chair Gensler Envisions Approval Over the Summer

Key Takeaways

• SEC Chair Gensler said he envisions approvals for some spot ether ETFs over the course of the summer.
• The SEC had approved listing of such products by exchanges last month and individual issuers are now working on the registration and disclosure process with the regulator.
• Gensler still won’t call ether a commodity, even though progress on approval of spot ether ETFs is seen as a reversal in SEC’s stance.

Spot ether (ETH) exchange-traded funds (ETFs) could soon become a reality in the United States. U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler recently stated that he “envisions” SEC approvals for some ETF applications over the summer, following the approval of the overall listing of such products by exchanges last month.

Despite Gensler’s optimistic comments, the price of ether was down 2.8% on Thursday afternoon, reflecting general weakness in the cryptocurrency markets.

When Will Ether ETFs Get Approval?

While ether ETFs were cleared by the SEC last month, Gensler explained that the next step is for individual issuers to have their registration statements or S-1 forms approved. Gensler noted that individual issuers are currently working through the registration process smoothly, and approvals could be granted once the necessary registration and disclosure processes are complete.

“I would envision that sometime over the course of the summer,” Gensler stated. A report from Galaxy Digital also predicted that spot ether ETF approvals could come by the end of August.

Ether has been at the center of a perceived regulatory shift at the SEC, as the approval for spot ether ETFs listing on U.S. exchanges caught many by surprise.

Gensler Still Won’t Say If Ether Is a Commodity

During a U.S. Senate Committee hearing on 2025 budgets for the SEC and Commodity Futures Trading Commission (CFTC), Gensler and CFTC Chairman Rostin Behnam were asked whether ether, the underlying cryptocurrency of the Ethereum network, should be classified as a commodity.

Behnam reiterated the CFTC’s stance that ether is indeed a commodity. However, Gensler chose not to directly answer the question, instead focusing on the SEC’s approval process for spot ether ETFs.

As developments in the cryptocurrency space continue to unfold, investors and market participants eagerly await further clarity on regulatory decisions surrounding digital assets like ether.

For more information, you can read the original article on Investopedia [here](https://www.investopedia.com/sec-chair-envision-ether-etf-approval-over-the-summer-8662841).

By staying informed and following updates from regulatory bodies like the SEC, investors can better navigate the evolving landscape of digital assets and make informed decisions regarding their investment strategies. As the summer progresses, all eyes will be on the SEC as they work towards potential approvals for spot ether ETFs, marking a significant milestone in the integration of cryptocurrencies into traditional financial markets.