S-1 approval for the Ethereum-ETF is possible "sometime by the end of this summer." This was stated by the head of the SEC, Gary Gensler, writes The Block.
The official outlined the deadlines in response to questions from lawmakers during a hearing before the Senate Appropriations Committee.
"Individual issuers are still going through the registration process. Everything is going smoothly," Gensler explained.
On May 23, the Commission approved proposals 19b-4 from issuers of Ethereum-based spot exchange-traded funds. The auction will be launched after the agency signs the registration applications on the S-1 form.
https://forklog.com/news/geri-gensler-rassmotrenie-zayavok-na-zapusk-ethereum-etf-potrebuet-vremeniTennessee Senator William Hagerty criticized Gensler for creating "roadblocks" forcing crypto companies to leave the United States.
"You are not prioritizing the development of rules in areas that are in dire need. [...]. Other jurisdictions are setting them. [...] And with the SEC and the CFTC, we have constant obstacles and lack of certainty," he complained.
The report presented on June 13 by Coinbase and The Block showed a decrease in the share of the number of US-based firms from 40% to 26% over the past five years.
Staking as an advantage
In an interview with the publication, cryptocurrency trader Gordon Grant noted a decrease in the interest of institutional investors in ETH-ETFs due to the refusal of their issuers to integrate into the staking product.
The expert admitted that many people will decide to buy a tool only after the implementation of this option. Before that, the big players will prefer on-chain alternatives.
According to Grant, unlike bitcoin, direct ownership of Ethereum will provide institutions with a more significant return advantage compared to ETH-ETFs.
In May, issuers excluded the option of staking from products due to the risk of recognizing the second largest cryptocurrency by capitalization as a security. JPMorgan predicted significantly lower demand for instruments compared to exchange-traded funds based on digital gold.
According to them, by the end of 2024, net inflows into ETH-ETFs will range from $1 billion to $3 billion. However, the indicator may triple if issuers return the stake at some stage.
Earlier, Animoca Brands co-founder Yat Siu said that Hong Kong may allow an option in Ethereum-based exchange-traded funds. A positive outcome is "almost a foregone conclusion," he added.
"If there are no significant developments in betting during the year, then I would say that the outcome of the elections will be another determining factor in how quickly this will happen in the United States," the expert commented.
JPMorgan Skeptics
The influx of $15.5 billion in spot bitcoin ETFs may not continue, according to JPMorgan.
Experts explained their skepticism by the current high prices for digital gold relative to its traditional counterpart and the cost of production.
According to them, if the current trend continues, the net inflow for the year as a whole will amount to ~ $26 billion.
Experts stressed that many investors could switch from storing coins on CEX in favor of ETFs due to economic efficiency, liquidity and regulatory advantages.
This shift is evident in the reduction of bitcoin stocks on exchanges by 220,000 BTC (~$13 billion) since the launch of exchange products in January.
Adjusted net inflows into ETFs are ~ $12 billion.
Recall that in May, JPMorgan announced a "cautious" position regarding cryptocurrencies in the near future due to the lack of drivers and a decrease in the interest of retail investors.
Earlier, 10x Research predicted a bitcoin rally due to the Fed's policy.
Prior to that, the ex-CEO of BitMEX, Arthur Hayes, noted the change in the macroeconomic background and called for buying the first cryptocurrency.