SEC Chair Gensler has hinted at the possibility of approving spot Ether ETFs by the summer of 2024. Analysts are predicting a potential launch in June, with final approvals expected by July. Despite the optimistic outlook, concerns have been raised about liquidity and regulatory complexities surrounding these ETFs.
During a recent Senate Banking Committee hearing, Gensler discussed President Biden’s 2025 budget requests for the SEC and mentioned that final approvals for listing and trading spot Ether ETFs could happen as early as this summer. The SEC approved 19b-4 filings from eight companies seeking to launch these ETFs, but S-1 registration statement approvals are still pending.
Lawmakers have been pressuring Gensler to prioritize the approval of Ether ETFs, with Senator Hagerty questioning the delay in approvals. Gensler, however, focused the discussion on Ether ETFs, despite the Commodity Futures Trading Commission Chair’s statement that Ether is a commodity.
Following the approval of spot Bitcoin ETFs earlier this year, the SEC has also signed off on 19b-4 filings for spot Ether ETFs from various asset managers. While the industry eagerly awaits these approvals, analysts predict a launch by mid to late summer 2024.
Bloomberg ETF analyst Eric Balchunas believes that launching Ether ETFs in June is possible, with final SEC approvals expected by July. Fellow ETF analyst James Seyffart shares a similar sentiment, predicting a summer launch for ETH ETFs. Nate Geraci, host of ETF Prime podcast, anticipates S-1 approvals within 2-3 months, citing the groundwork laid by the approval of spot Bitcoin ETFs and Ethereum futures ETFs.
Despite these positive forecasts, concerns about liquidity and regulatory complexities remain. Matteo Greco from Fineqia International warns that these issues could potentially delay final approvals. Gensler himself has indicated that the approval process for S-1 registration statements may take time, hinting at potential delays.