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Gary Gensler: S-1 filings for Ethereum ETFs could be approved this summer

S-1 approval for an Ethereum ETF is possible “sometime by the end of this summer.” The head stated this SEC Gary Gensler writes The Block.

The official outlined the timing in response to questions from lawmakers during a hearing in the US 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. Trading will begin after the agency signs registration statements on Form S-1.

Tennessee Senator William Hagerty criticized Gensler for creating “roadblocks” forcing crypto companies to leave the United States.

“You are not prioritizing regulations in areas that desperately need it. […]. Other jurisdictions set them. […] And with the SEC and CFTC we have constant obstacles and lack of certainty,” he complained.

A June 13 report from Coinbase and The Block showed a decline in the number of US-based firms from 40% to 26% over the past five years.

Staking as an advantage

IN interview To 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 will decide to purchase the tool only after implementing this option. Until then, large 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 staking option 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.

In their opinion, by the end of 2024, the net inflow into ETH-ETFs will be from $1 billion to $3 billion. However, this figure could triple if issuers return staking at some stage.

Formerly co-founder of Animoca Brands, Yat Siu stated, 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 is no significant movement in staking within a year, then I would say that the outcome of the election will be another determining factor in how quickly this happens in the US,” the expert commented.

JPMorgan Skeptics

$15.5 billion inflow into 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 be ~$26 billion.

Experts emphasized that many investors could switch from storing coins to CEX in favor of ETFs due to cost efficiency, liquidity and regulatory advantages.

This shift is evident in a 220,000 BTC (~$13 billion) drop in Bitcoin holdings on exchanges since the launch of exchange products in January.

Adjusted net inflows into ETFs are ~$12 billion.

In May, JPMorgan announced a “cautious” stance on cryptocurrencies in the near term due to a lack of drivers and declining interest from retail investors.

Previously, 10x Research predicted a Bitcoin rally thanks to politics Fed.

Prior to this, ex-CEO of BitMEX Arthur Hayes noted a change in the macroeconomic background and called for buying the first cryptocurrency.

Source: Cryptocurrency

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