The approval process for the Ethereum Spot ETF is progresses smoothly, according to the Chairman of the United States Securities and Exchange Commission, Gary Gensler. Speaking at the Bloomberg Invest Summit, Gensler expressed optimism about the new investment product, which is expected to launch as early as July. This development marks an important milestone for the cryptocurrency market, as Ethereum prepares to follow in the footsteps of its counterpart Bitcoin.
Ethereum ETF: Smooth Sailing Towards Approval?
Gensler highlighted the positive trajectory of Ethereum spot ETF approval process in his remarks. “The registration process is going smoothly,” he said, echoing statements made earlier this month before the U.S. Senate Appropriations Subcommittee on Financial Services.
The SEC is actively working with issuers on their S-1 filings, a prerequisite to beginning ETF trading. “I’m looking at sometime during this summer,” Gensler added, hinting at a potential launch date in the coming months.
The SEC’s goal remains to ensure full compliance and transparency. Gensler emphasized the importance of “disclosure and registration,” noting that these steps are crucial for the final approval of ETFs.
This cautious but confident approach aims to protect investors while facilitating the introduction of innovative financial products to the market.
Transmitters prepare for launch
Several Ethereum ETF issuers are fighting to meet SEC requirements. Companies like VanEck filed amended S-1 filings, detailing critical aspects such as seed capital and fees. VanEck notably revealed that it would charge a 0.20% fee, which will be suspended until 2025, making the ETF free at launch. This strategic move is intended to attract investors and establish an early market presence.
Other issuers are following suit, finalizing their filings and preparing for a possible July launch. The momentum of these companies reflects broader industry anticipation of SEC approval, which could open the door to a new wave of investments in Ethereum.
Wider market implications
The approval of Spot Ethereum ETFs has significant implications for the cryptocurrency market. The success of Bitcoin ETFs earlier this year set a precedent, with Bitcoin prices hitting an all-time high of $73,000 just three months after the ETF’s launch. Although experts believe that Ethereum ETFs may not attract the same level of inflows as Bitcoin, the potential for increased investment is substantial.
Gensler has not shied away from the challenges of the broader digital asset market. He criticized the industry for often using substandard methods and failing to provide necessary information. Calling many cryptocurrencies securities, Gensler highlighted the need for greater regulatory oversight to protect investors.
Featured image from Pixabay, chart from TradingView
