Gary Gensler, the chairman of the Securities and Exchange Commission (SEC), has announced that the regulatory body expects to approve the S-1 registration statement for a spot Ethereum ETF application at some point “this summer,” marking the final step before these funds can be listed in the United States.
He confirmed that these ETFs will be able to launch by the end of summer, much earlier than the November presidential election.
The regulatory agency recently approved the related 19b-4 application submitted by the stock exchange in May. However, the S-1 registration statements for individual issuers are still pending approval.
During a Senate hearing on June 13th, Gensler stated, “Individual issuers are still in the registration process, and progress is going well.”
Senator Bill Hagerty praised Gensler’s commitment to approving applications before the end of summer, adding, “We must get this market right.”
The timeline provided by Gensler aligns with predictions made by industry experts in recent weeks.
Bloomberg ETF analysts believe that following the approval of the 19b-4, approval of the S-1 documents may take anywhere from a few weeks to several months. Similarly, other experts including those from JPMorgan predict that ETFs will begin trading before the November election.
At this point, although the approval of S-1 is pending, the launch of a spot Ethereum ETF in the United States is considered a foregone conclusion. Moreover, many industry professionals, including legal experts, now consider Ethereum to be a commodity, with the SEC’s approval of Ethereum as a single asset ETF product implying its classification as a commodity.
However, during questioning by the Senate, Gensler did not clarify whether Ethereum is classified as a security or a commodity. He sidestepped the question, providing no definitive answer and stating that the agency has only “partially approved” an Ethereum ETF.
Meanwhile, Rostin Behnam, chairman of the Commodity Futures Trading Commission (CFTC), explicitly stated in the Senate that Ethereum is a commodity and should be regulated by that agency.
Gensler also discussed the SEC’s budget request for the fiscal year 2025, emphasizing the significant growth and changes in the market, saying, “Our limited resources stand in stark contrast to the massive growth and changes in the market.”
He also added, “The SEC currently oversees approximately 40,000 entities, including over 13,000 registered funds, 15,400 investment advisers, and 3,300 broker-dealers.”
Gensler expressed concerns about a provision in the House Appropriations Committee’s funding bill for the SEC for fiscal year 2025, which restricts funds for enforcement actions related to digital asset trading, excluding fraud or market manipulation.
He noted, “This would severely weaken our efforts. While not all crypto assets are securities, those that are securities have an obligation to disclose comprehensive, fair, and complete information to the public.”
The SEC chairman emphasized the crucial role of the agency in maintaining market integrity and protecting investors. He also stressed the importance of adequate funding to keep pace with the rapid growth of the market and technological advancements.
Finally, he told the Senate, “The SEC is a watchdog serving the investing public and issuers.”
