SEC Chair Gary Gensler recently discussed the timeline for spot Ethereum ETF launches, suggesting that it will depend on how quickly applicants respond to the regulator’s questions and comments on reasons for approvals. He emphasized that firms are “self-motivated” to address SEC comments and can determine their responsiveness.
Gensler mentioned that Grayscale’s legal win, which enabled spot Bitcoin ETF approvals, had also influenced the SEC’s stance on spot Ethereum products. This legal win paved the way for the SEC to approve Bitcoin and Ethereum futures ETFs in previous years. Gensler stated that the outcome led to the approval of spot Bitcoin ETFs in January, and the SEC’s consideration of market correlations were key in approving the latest spot Ethereum ETFs.
Market Correlations
Gensler highlighted that SEC staff analyzed correlations between Ethereum spot and futures markets, noting that they are relatively similar to those in the Bitcoin space. He reiterated these sentiments in a CNBC interview, mentioning that spot ETH ETF launches could “take some time.” The SEC compared the spot Ethereum market to the Ethereum futures market in its decision-making process, taking into consideration the trading history of ETH futures ETFs on the Chicago Mercantile Exchange for over three years.
Industry experts have speculated on a potential launch date for spot Ethereum ETFs, with Bloomberg ETF analyst Eric Balchunas predicting a launch by the end of June and setting July 4 as an “over/under” date. Polymarket, which tracks community bets based on staked crypto amounts, shows 57% odds of the funds beginning trading by July 4.
Gensler’s comments suggest that the timeline for spot Ethereum ETF launches is contingent on applicant responsiveness to SEC inquiries and comments. Market correlations between Ethereum spot and futures markets played a significant role in the SEC’s approval of these products. While experts speculate on potential launch dates, the exact timeframe remains uncertain.