U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler has indicated to lawmakers that he expects spot ethereum exchange-traded funds (ETFs) to launch this summer. The SEC is still working with fund issuers on their S-1 filings, which must be declared effective before the spot ether ETFs can launch.
SEC Chair Gary Gensler Envisions US Spot Ether ETFs Launching This Summer
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Gary Gensler Answers Crypto Questions
The chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, testified before the U.S. Senate Appropriations Subcommittee on Financial Services on June 13. This hearing was part of a review of the President’s Fiscal Year 2025 budget requests for both the SEC and the Commodity Futures Trading Commission (CFTC).
During the hearing, Gensler answered some questions regarding cryptocurrency and the approval of spot ethereum exchange-traded funds (ETFs). Senator Bill Hagerty (R-TN) asked him why the SEC has not fully approved spot ether ETFs, particularly in light of a recent court ruling regarding spot bitcoin ETFs that found the SEC’s disapproval grounds unwarranted.
“We actually, as an agency, did approve ethereum exchange-traded products,” Gensler told Hagerty. However, the lawmaker interjected, noting that the approval was only partial. Gensler insisted that the SEC approved the “filings that were in front of us from stock exchanges,” adding, “I think there were eight or nine of them.” Gensler continued:
Individual issuers still are working through the registration process. That’s working smoothly, and I would envision sometime over the course of this summer…
The SEC approved 19b-4 filings for eight spot ether ETFs in May. However, the agency has not yet greenlighted the S-1 (registration statement) filings, which must be completed and declared effective before the spot ether ETFs can launch.
When Senator Hagerty pressed Gensler on whether spot ethereum ETFs will be fully approved this summer, Gensler responded: “Again, that’s done at the Staff level. But it’s just disclosure and registration.” He emphasized that the registration statements must be proper before the filings can be declared effective.
Hagerty also questioned Gensler regarding the agency’s prioritization of resources and the establishment of constructive regulatory frameworks.
“You’re not prioritizing staff, and you’re not prioritizing rulemaking for areas that desperately need it,” he said, adding: “Here I’m talking about setting in place a constructive set of rules of the road for the crypto industry.” The lawmaker opined:
This is an innovative industry. It’s an industry that the United States should be leading on. Yet, other jurisdictions and other countries are setting up rules for their ecosystems.
“What happens here with the SEC and with the CFTC is constant roadblocks and a lack of certainty. And what’s happening is that this innovative industry is finding itself increasingly pushed offshore,” Hagerty concluded.
What do you think about SEC Chair Gary Gensler’s statements? Do you think spot ether ETFs will launch this summer? Let us know in the comments section below.
