The U.S. Securities and Exchange Commission (SEC) appears to be on track to approve the first spot Ethereum exchange-traded funds (ETFs) in the coming weeks, potentially before the 2024 elections.

SEC Chair Gary Gensler has repeatedly stated that the approval process for Ethereum ETFs is progressing smoothly, with the final registration requirements being handled at the staff level. In a recent interview at the Bloomberg Investment Summit, Gensler expressed confidence in the approval process, though he declined to provide a specific timeline.

The SEC's discussions with ETF issuers have reached the final stage, indicating that the launch of Ethereum ETFs is imminent. According to anonymous sources, the approval is "probably not more than a week or two away". Amendments to the documents have progressed to resolving only "minor" issues, and issuers are awaiting the SEC's approval to launch the ETFs.

The approval of spot Ethereum ETFs could have significant implications for the cryptocurrency market. Experts predict that the Ethereum ETFs could replicate the success of the recently approved spot Bitcoin ETFs, which saw the price of Bitcoin reach an all-time high of $73,000 just three months after launch.

However, not everyone is optimistic about the potential impact of Ethereum ETFs. JPMorgan, a major banking institution, has expressed skepticism about the likelihood of Ethereum ETFs matching the performance of their Bitcoin counterparts.

Despite the anticipation surrounding the Ethereum ETF approval, SEC Chair Gensler has maintained his critical stance on the cryptocurrency industry. He has accused the industry of using non-compliant rails outside of exchange-traded products and has referred to many cryptocurrencies as securities that do not provide necessary disclosures to investors.

As the SEC continues its review of Ethereum ETF applications, the approval could come before the 2024 elections, potentially shaping the political landscape and the future of cryptocurrency regulation in the United States.