by Jonathan Agozie 
Gensler indicated a potential approval window extending from June to August, suggesting a possible end-of-summer resolution.
The wait for SEC feedback on the S-1 filings for spot Ethereum ETFs, submitted on May 31, is stretching longer than anticipated, with issuers still awaiting comments. SEC Chair Gary Gensler indicated a potential approval window extending from June to August, suggesting a possible end-of-summer resolution.
🚨NEW: @SECGov Chairman @GaryGensler just told Senator @BillHagertyTN he envisions $ETH Spot ETF S-1’s will likely be approved by the *end of the summer.*
— Eleanor Terrett (@EleanorTerrett) June 13, 2024
Initially, issuers expected comments on their drafts by June 7, based on insights from a source familiar with agency discussions. However, feedback is now anticipated by the summer’s end. Gensler mentioned on CNBC that approvals for the S-1 forms would take considerable time, but a final decision might come between June and August.
The S-1 forms represent the second phase in the two-step process to enable spot Ethereum ETFs for trading. The first step involved approving the 19b-4 forms on May 23 for various Ethereum ETF issuers, including VanEck and BlackRock, signaling increased crypto adoption. However, the S-1 forms, which require detailed ETF information, are still pending approval.
A Constructive Regulatory Framework
During a meeting, Tennessee Senator Bill Hagerty questioned Gensler about why the commission hadn’t fully approved ETFs. He claimed Gensler was not prioritizing constructive rules for the crypto industry. Gensler did not provide a clear answer regarding whether ETH is a commodity or a security, maintaining an unsure stance. Although Commodity Futures Trading Commission Chair Rostin Behnam stated Ether was a commodity, Gensler pivoted to discussing Ether ETFs instead of giving a direct answer.
Hagerty criticized Gensler’s rule-making for the crypto market, expressing concern that the agency’s obstacles prompted U.S. companies to move abroad. He emphasized the need for a constructive regulatory framework.
In contrast, the SEC approved 194-b filings for spot Bitcoin ETFs on Jan. 10, and these investment vehicles began trading on Jan. 11 after the SEC approved their S-1 prospectuses. BlackRock’s iShares Bitcoin Trust was among the first ETFs to start trading on the Nasdaq. The SEC has approved the 19b-4 filings for spot ETH ETFs from multiple firms, including Fidelity, Grayscale, Bitwise, VanEck, Ark, Invesco Galaxy, and Franklin Templeton. However, it is unclear when these will start trading and which company will be the first to trade once the S-1 registration statements are approved.
