Key Points
- SEC Chair Gary Gensler indicates Ethereum ETF approvals may happen by September.
- Despite a decline following the announcement, Ethereum’s price shows signs of recovery.
SEC Chair Gary Gensler recently hinted at a possible timeline for the approval of Ethereum Exchange Traded Funds (ETFs).
SEC’s Stand on Ethereum ETFs
During a budget meeting on 13th June, Gensler responded to an inquiry by U.S. Senator Bill Hagerty about the ETF approval process. He indicated that the approvals could occur this summer.
Gensler further clarified that individual issuers are still working through the registration process, which he described as running smoothly.
On 23rd May, the SEC approved 19b-4 filings from eight companies. However, these issuers still need their S-1 filings approved to start trading on US exchanges.
Response to SEC’s Announcement
Gensler explained that the approval process depends on how quickly issuers respond to the SEC’s feedback. He emphasized that the registrants’ level of responsiveness is entirely up to them.
Nate Geraci, President of ETF Store, expressed frustration over the lengthy approval process.
Despite such concerns, Gensler suggested that the Ethereum ETFs could be approved by September. This extended timeline from June to September is likely intended to give issuers ample time to prepare for trading.
Ethereum’s Market Performance
Following the 13th June announcement, Ethereum’s price, which had been trading at $3,558, fell to $3,464, its lowest point in June.
However, the latest updates show Ethereum’s price recovering, with a rise of 0.69%, trading at $3,517.
Despite this recovery, the lack of strong bullish sentiment suggests that Ethereum might once again fall victim to prevailing bearish trends.
