The head of the U.S. Securities and Exchange Commission (SEC) has indicated that Ethereum (ETH) based exchange-traded products (ETFs) could receive approval from the regulatory body by the end of the summer.
During a recent hearing in the U.S. Senate, SEC Chair Gary Gensler mentioned that while the SEC had given partial approval to Ethereum ETFs earlier in the year, full approval would still take a few more months.
Gensler stated, “The Ethereum exchange-traded product filings submitted by stock exchanges, around eight or nine in total, were all approved jointly. Individual issuers are currently in the process of completing the registration smoothly. I anticipate that it will be completed sometime during this Summer.”
In May, the SEC gave the green light to form 19b-4 filings from major financial institutions such as BlackRock, VanEck, Grayscale, Fidelity, and ARK Invest, bringing them closer to launching ETH ETFs.
Before any ETH-related ETF products can be introduced to the market, the SEC must approve each firm’s S-1 registration form.
Following the SEC’s approval of the company’s filings, $3 billion worth of Ethereum was withdrawn from centralized exchange (CEX) platforms last week.
In January, the SEC approved ETFs based on Bitcoin (BTC), the leading cryptocurrency by market cap, after previously rejecting them for years. A court ruling last year mandated that the SEC reevaluate its stance to maintain consistency, as it had previously approved BTC’s futures ETFs.
At the time of writing, Ethereum is trading at $3,460, reflecting a 4.23% decrease over the last 24 hours.
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