US Securities and Exchange Commission (SEC) Chair Gary Gensler announced that spot Ethereum exchange-traded funds (ETFs) will likely launch this summer.

He made this statement during a budget hearing with the Senate Appropriations Committee on Thursday, June 13.

Ethereum ETFs Almost Ready to Trade

Gensler highlighted that the final approval process for these ETFs is progressing well. The SEC had previously given the green light to a group of initial applications. Now, the final registration requirements, known as S-1 filings, are being managed at the “staff level.” Once approved, these ETFs will allow investors to trade funds holding actual ether, akin to the earlier bitcoin spot ETFs.

The introduction of Ethereum ETFs will provide broader market access to this popular cryptocurrency. This move mirrors the earlier establishment of bitcoin spot ETFs, which facilitated trading in funds holding Bitcoin (BTC).

During the hearing, Gensler was asked if ETH is a commodity. He refrained from giving a definitive answer, reflecting the SEC’s ongoing uncertainty regarding the classification of Ethereum. In contrast, Commodity Futures Trading Commission (CFTC) chief Rostin Behnam unequivocally stated that ETH is a commodity.

The forthcoming Ethereum ETFs mark a significant development in the cryptocurrency market, promising increased accessibility and investment opportunities for traders and investors. The SEC’s careful handling of the final approval process underscores the regulatory body’s commitment to ensuring market stability and investor protection.