The cryptocurrency industry may have a reason to cheer as the U.S. Securities and Exchange Commission (SEC) chair, Gary Gensler, drops hints at an anticipated timeline for the approval of spot ether ETFs (Exchange-Traded Funds) offerings. During a Senate Committee hearing, Gensler estimated that the approval could roll in sometime during the summer. He assures that the registration process is proceeding smoothly for individual issuers. Though approved by the SEC in May, trading is expected to start between July and August, but surely before November, according to industry pundits.
Ether ETFs – a new investment opportunity, would allow investors an indirect exposure to Ethereum, the second-largest cryptocurrency by market capitalization, eliminating the need to hold the asset personally. Ethereum ETF could pave the way for catering to a larger mainstream audience, thus providing an impetus to the volatile yet thriving crypto market.
However, not all that came out of the senate hearing was positive for the sector. The regulator’s approach towards the crypto industry faced criticism from authorities. Senator Bill Hagerty blamed Gensler and the SEC for stifling innovation by erecting regulatory roadblocks, which have prompted U.S. companies to relocate abroad. Hagerty expressed concerns over the lack of regulation in sectors that are in dire need of it, citing the burgeoning crypto industry as an example.
The Senator’s concerns find resonance in a recent report by Coinbase which suggests that the U.S.’s share of crypto firms has been dwindling for the past five years, with now only 26% based in the country. This sentiment seems to be supported by even former President Donald Trump, the presumptive Republican candidate for the upcoming November elections. In recent statements, Trump urged for domestic bitcoin mining to counter a potential central bank digital currency, stating that the U.S. ought to spearhead the crypto industry instead of being left behind.