The Chairman of the Securities and Exchange Commission (SEC), Gary Gensler, has announced that regulatory authorities are expected to approve the S-1 registration statement for a spot Ethereum ETF application at some point “this summer,” marking the final step before these funds can be listed in the United States.
He confirmed that these ETFs will be able to launch by the end of the summer, well ahead of the November presidential election. Regulatory authorities recently approved the related 19b-4 application submitted by the stock exchange in May. However, individual issuers’ S-1 registration statements are still pending approval.
During a Senate hearing on June 13th, Gensler stated, “Individual issuers are still in the registration process, and progress is currently going smoothly.”
Senator Bill Hagerty praised Gensler’s commitment to approving the applications before the end of the summer, adding, “We must get this market right.”
Gensler’s timeline aligns with recent predictions by industry experts in the past few weeks. Bloomberg ETF analysts believe that following the approval of 19b-4, the approval of S-1 filings may take several weeks to a few months. Similarly, other experts, including those from JPMorgan, predict that ETFs will start trading before the November election.
At this point, although the approval of S-1 filings is pending, the launch of a spot Ethereum ETF in the United States is considered a foregone conclusion. Additionally, many industry insiders, including legal experts, now view Ethereum as a commodity and believe that the SEC’s approval of Ethereum as a single-asset ETF product signifies its classification as a commodity.
However, during questioning in the Senate, Gensler did not clarify whether Ethereum is classified as a security or a commodity. He evaded the question and did not provide a clear answer, stating that the agency has only “partially approved” the Ethereum ETF.
Meanwhile, the Chairman of the Commodity Futures Trading Commission (CFTC), Rostin Behnam, explicitly stated in the Senate that Ethereum is a commodity and should be regulated by that agency.
Gensler also discussed the SEC’s budget request for the 2025 fiscal year, emphasizing the significant growth and changes in the market. He stated, “Our limited resources contrast sharply with the market’s huge growth and changes.”
He also added, “The SEC currently oversees around 40,000 entities, including over 13,000 registered funds, 15,400 investment advisers, and 3,300 broker-dealers.”
Gensler expressed concerns about a provision in the House Appropriations Committee’s funding bill for the SEC in the 2025 fiscal year, which limits funds for enforcement actions related to digital asset trading, excluding fraud or market manipulation.
He mentioned, “This would severely hinder our efforts. While not all crypto assets are securities, those that are securities have an obligation to disclose comprehensive, fair, and complete information to the public.”
The SEC Chairman emphasized the crucial role of the agency in maintaining market integrity and protecting investors. He also stressed the importance of adequate funding to keep pace with the rapidly evolving market and technological advancements.
Finally, he told the Senate, “The SEC is a watchdog serving the investing public and issuers.”
