SEC chair Gary Gensler recently stated that the timeline for the launch of spot Ethereum ETFs depends on how quickly applicants respond to the SEC’s questions and comments. Gensler mentioned that the firms are self-motivated to answer SEC comments and determine their responsiveness. The SEC is expected to comment on recently amended S-1 registrations from eight spot Ethereum ETF issuers, and applicants will need to file further amendments before launching each product. While Gensler did not provide a specific timeline for the process, industry experts have speculated on potential launch dates.
Grayscale, a major player in the crypto industry, influenced the SEC’s stance on spot Ethereum products. Grayscale’s legal win, which paved the way for spot Bitcoin ETF approvals, also played a role in the SEC’s decision regarding spot ETH products. The SEC approved Bitcoin and Ethereum futures ETFs in previous years based on correlations between spot and futures markets. Gensler stated that market correlations were key to the SEC’s approval of the latest spot Ethereum ETFs, citing similarities to the bitcoin space.
In a CNBC interview, Gensler mentioned that spot ETH ETF launches could take some time and did not provide a specific launch date. The SEC compared the spot Ethereum market to the Ethereum futures market in its decision-making process. Gensler noted that ETH futures ETFs have been trading on the Chicago Mercantile Exchange for over three years. Bloomberg ETF analyst Eric Balchunas predicted that the ETFs could launch by the end of June, with July 4 as an over/under date. Polymarket, which represents community bets based on staked crypto amounts, shows 57% odds that the funds could begin trading by July 4.
Overall, the timeline for spot Ethereum ETF launches is contingent on applicant responsiveness to SEC questions and comments. Grayscale’s legal win regarding spot Bitcoin ETF approvals also influenced the SEC’s stance on spot ETH products. Market correlations between spot and futures markets played a crucial role in the SEC’s decision to approve the latest spot Ethereum ETFs. While Gensler did not provide a specific launch date, industry experts have speculated on potential timelines for the launch of these products.
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