This summer, the Securities and Exchange Commission (SEC) is expected to approve several spot Ethereum ETF applications, as stated by SEC chairman Gary Gensler.

Following the SEC’s approval of 19b-4 applications from stock exchanges in late May, the next step is to get the final regulatory approval for the individual issuers’ applications. Once these are approved, spot Ethereum ETFs can be launched in the United States.

During a Senate hearing on Thursday, Gensler mentioned that the registration process for individual issuers is progressing smoothly. He anticipates that approvals will be granted sometime this summer.

Gensler noted that Ethereum futures ETFs have been available since last summer, and CME Ether futures have been trading for several years. Despite the low demand for futures ETFs, analysts like those at K33 Research predict that spot Ethereum ETFs could attract up to $4 billion within their first five months. This would account for 20% to 30% of the flows seen in Bitcoin-based ETFs.

The timeline suggested by Gensler aligns with the predictions of ETF experts at Bloomberg, who estimate that the S-1 documents will be approved within weeks to months following the 19b-4 approvals. This means that the launch of such funds in the U.S. is more a question of “when” rather than “if.”

However, Gensler did not provide a clear answer on whether Ethereum is classified as a security or a commodity when directly questioned. Legal experts believe that by allowing a single-asset ETF product, Ethereum has been implicitly categorized as a commodity.

Gensler also voiced his concerns about a recent stipulation in the agency’s fiscal year 2025 funding bill proposed by the House Appropriations Committee. This stipulation would prevent the SEC from using its funds to enforce actions related to digital asset transactions, except in cases of fraud or market manipulation.

He expressed that such a stipulation would significantly hinder the SEC’s regulatory efforts. “While not all cryptos are crypto securities, those that are have an obligation to disclose full, fair, and complete information to the public. We’d lose that,” Gensler said.

In summary, the anticipated approval of spot Ethereum ETFs marks a significant development for the cryptocurrency market in the U.S. While there are still regulatory and classification challenges, the market is poised for substantial growth once these ETFs are launched.