Crypto investors now have an idea of when the highly anticipated spot Ethereum exchange-traded funds (ETFs) will start trading after their approval in May. In a June 13 US Senate Committee on Appropriations hearing, the Securities and Exchange Commission (SEC) chairman Gary Gensler revealed that these financial products could get their final approvals “sometime over the course of this summer.”
Also Read: SEC Approves All Spot Ethereum ETFs
Gensler made this revelation in response to a question from Tennessee Republican Senator Bill Hagerty about the ETF approval process. According to Gensler, the approval process was “working smoothly,” and the product issuers were undergoing administrative procedures from the regulator’s staff.
When will the Ethereum ETFs start trading?
On May 23, the SEC unexpectedly approved the 19b-4 document for eight spot Ether ETFs, fueling questions about when these products would begin trading. While some stakeholders predicted that the products could begin trading as early as July, others pointed out that the approval could be before November.
Also Read: Ethereum ETFs Tank in Trade as $3B ETH Exits Crypto Exchanges
Meanwhile, senior Bloomberg ETF analyst Eric Balchunas explained that the issuers are still awaiting comments from the SEC Division of Corporation Finance on their S-1 filings. He said:
“Corporation Finance is just looking at these documents for the first time (why? Because of the (highly likely) political last minute 180 (remember they were as surprised by this as anyone else)). Unclear if they’re prioritizing this work but either way could be a bit.”
Bloomberg ETF analyst James Seyffart pointed out that previous predictions about July were a “complete guess” as he “was more confident in saying that ETH ETFs will launch at some point this summer.”
Senators criticize regulators’ crypto regulatory actions
Meanwhile, the SEC was criticized for failing to regulate the crypto industry properly. Senator Hagerty described Gensler’s commission approach to the industry as roadblocks that have prevented the US from becoming a crypto leader. On social media, he wrote:
“Gensler’s failure to provide clear rules of the road for crypto is pushing the industry overseas. Crypto innovation creates jobs, drives technological progress, and spurs economic growth—it should be happening here in America.”
Notably, the SEC’s sister regulatory agency — the Commodities Futures Trading Commission (CFC) — was also questioned regarding its ability to regulate the emerging industry. In his remark, Senator Dick Durbin wondered how the Rostin Behnam-led agency would be effective for “this fast-moving, capacious world [of crypto].”