Ether ETFs May Receive Final SEC Approval within Three Months, Hints Chairman Gary Gensler
Summary:
SEC Chairman, Gary Gensler, has hinted that the regulatory body may finalize rules around spot Ether (ETH) ETFs within the next three months. Fielding questions from lawmakers during a Senate Banking Committee hearing, Gensler suggested that the SEC could approve the necessary S-1 registration for asset managers over the summer. His comments come following the recent approval of 19b-4 filings from multiple companies, awaiting final S-1 approval for trading on U.S. exchanges. Despite the inconsistencies in defining Ether as a commodity or a token, the progression towards final ETF approval looks promising.
Chairman of the U.S Securities and Exchange Commission, Gary Gensler, brought to the attention of legislators the possibility of finalizing regulations related to trading spot Ether (ETH) exchange-traded funds (ETFs) within the coming three months. Gensler disclosed this prediction during a Senate Banking Committee session on June 13, which revolved around U.S. President Joe Biden’s budget proposal for the SEC for the year 2025. Gensler expressed confidence in the SEC's ability to do the needful regarding S-1 registration for asset managers over the summer months. Earlier, on May 23, eight applications received 19b-4 approval from the SEC but are waiting for S-1 clearance before they can be traded on U.S. exchanges.
The chairman's remarks came in answer to the question asked by Senator Bill Hagerty from Tennessee, who demanded to know why ERC-20-based ETFs hadn’t received complete approval. Hagerty accused Gensler of neglecting the creation of a productive rule framework for the digital currency market. Despite Gensler's avoidance of a direct response, and Commodity Futures Trading Commission's Chairman Rostin Behmam's categorization of Ether as a commodity, the focus was redirected towards Ether ETFs.
Gensler reported that all Ether ETF product applications presented to the SEC for approval had received joint authorization, with individual issuance still in progress. He estimated that the process would span across the summer months. The SEC Chairman had earlier stated in an interview on June 5 that the last phase of approval for spot Ether ETFs would take a while after giving the go-ahead to 19b-4 filings.
ETF analyst Eric Balchunas speculated about the possibility of rolling out Ether products on American exchanges by June, but he projected the final SEC approvals to arrive by July 4. James Seyffart, another ETF analyst, expressed his optimism about the release of ETH ETFs sometime during the summer while commenting on Gensler’s statement.
In the past, on Jan. 10, the SEC permitted 194-b filings for spot Bitcoin ETFs, which started trading from the subsequent day after receiving the SEC's approval for the effective S-1 prospectuses. Among the first ETFs to get initiated for trading on Nasdaq was BlackRock's iShares Bitcoin Trust, as well as ETFs from Fidelity, Grayscale, Bitwise, VanEck, Ark, Invesco Galaxy, and Franklin Templeton. However, it remains uncertain which of these entities will be the first to gain full approval once the registration process is completed.
Published At
6/13/2024 7:02:27 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.