Key Points:

  • SEC Chair Gary Gensler stated that the spot Ethereum ETF approval is progressing smoothly.

  • Eight Ethereum ETFs have received preliminary approval, but final trading depends on the effectiveness of their registration statements.

At the Bloomberg Invest Summit on Tuesday, U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler stated that the process for launching spot Ethereum exchange-traded funds (ETFs) is "going smoothly."

SEC Chair Confirms Smooth Progress for Spot Ethereum ETF Approvals

While Gensler did not provide a specific timeline, his comments suggest that the SEC is actively reviewing applications and that spot Ethereum ETF approval could occur over the summer.

Gensler's remarks at the summit in New York echoed similar statements he made earlier this month. Speaking before the U.S. Senate Appropriations Subcommittee on Financial Services, he discussed the ongoing spot Ethereum ETF approval process, noting that individual issuers are still working through the registration process. He emphasized the importance of full disclosure and registration before ETFs can launch.

During the summit, Gensler also reiterated his critical stance on the digital asset market. He highlighted that many cryptocurrencies are considered securities and stressed the necessity for proper disclosures to protect American investors. He mentioned that the SEC's Division of Corporation Finance handles numerous registration statements, and it is up to asset managers to ensure accurate disclosures for the ETFs to proceed.

Last month, the SEC approved 19b-4 forms for eight Ethereum ETFs. However, firms still need their registration statements, known as S-1s (or S-3 for Grayscale, which aims to convert its Ethereum Trust to an ETF), to be effective before trading can commence. Recently, firms filed amended registration statements, detailing seed investments and fees as they await the SEC's final approval.

Positive Signs on Spot Ethereum ETF Launch

In addition to the spot ETFs, Gensler clarified that an ETF trading Ethereum futures had already been approved last October. This approval included applications from Valkyrie Investments, VanEck Funds, ProShares, Bitwise Asset Management, and others. The pending spot ETF applications will offer investors direct exposure to Ethereum via regulated exchanges.

As Coincu reported, VanEck has filed an 8-A form for its spot Ethereum ETF product, indicating progress towards potential approval. Analysts and experts remain optimistic about the spot Ethereum ETF approval timeline, with some predicting it could occur as early as the first week of July. Bloomberg ETF analyst Eric Balchunas and Bitwise CEO Hunter Horsley have both suggested that spot Ethereum ETF trading could begin soon.

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