SEC Chair Gary Gensler has indicated the possibility of approving spot Ether ETFs by the summer of 2024. Analysts foresee a potential launch in June, with final approvals expected by July. Despite the positive outlook, some experts have raised concerns about liquidity and regulatory challenges.
Gensler made this announcement during a Senate Banking Committee hearing on June 13, while discussing President Joe Biden’s 2025 budget requests for the SEC. The SEC recently approved 19b-4 filings from eight companies looking to launch spot Ether ETFs, with S-1 registration statement approvals still pending. Gensler expressed his expectation that these approvals would come sometime during the summer.
There is mounting pressure on Gensler from lawmakers, with Tennessee Senator Bill Hagerty questioning the delay in approving Ether ETFs. This comes after the CFTC Chair Rostin Behmam classified Ether as a commodity. The focus, however, remains on Ether ETFs.
Following the SEC’s approval of spot Bitcoin ETFs earlier this year, various asset managers like Fidelity, Grayscale, and VanEck have filed 19b-4 applications for spot Ether ETFs. The industry is eagerly awaiting these approvals, with analysts and experts predicting a mid to late summer launch.
ETF analysts Eric Balchunas and James Seyffart suggest a possible June launch with final approvals by July, while Nate Geraci of ETF Prime podcast anticipates S-1 approvals within 2-3 months. Despite the positive sentiment, concerns about liquidity and regulatory hurdles continue to linger. Matteo Greco from Fineqia International has warned that these issues could potentially delay the process, a sentiment echoed by Gensler himself, who hinted at possible delays in the approval of S-1 registration statements.
