SEC Chair Gary Gensler announced that the regulator anticipates approving the S-1 registration forms for spot Ethereum ETF applications "sometime over the course of this summer," marking the final step before these funds can launch in the United States.

Gensler confirmed that the ETFs could be operational by the end of summer, well ahead of the November presidential elections. While the SEC recently approved related 19b-4 applications filed by stock exchanges in May, the approval of individual issuers' S-1 registration forms is still pending.

Speaking during a Senate hearing on June 13, Gensler noted, "Individual issuers are still in the process of working through the registration process, which is progressing smoothly."

Senator Bill Hagerty praised Gensler for committing to approve the applications by the end of summer, emphasizing the urgency to advance this market.

Gensler's timeline aligns with industry predictions, with Bloomberg ETF analysts suggesting that approval of the S-1 documents could occur within "weeks" to "months" following the 19b-4 approvals. Similarly, JP Morgan and other experts forecast that these ETFs could commence trading before the November elections.

Despite the pending S-1 approvals, the introduction of spot Ethereum ETFs in the US appears inevitable at this stage. Ethereum's classification as a commodity has gained traction among legal experts, influenced by the SEC's approval of Ethereum as a single-asset ETF product.

During the Senate hearing, Gensler did not clarify whether Ethereum is classified as a security or commodity, stating that the SEC had only "partially" approved Ethereum ETFs. In contrast, CFTC Chair Rostin Behnam affirmed that Ethereum is indeed a commodity and falls under his agency's oversight.

Gensler also addressed concerns regarding the SEC's fiscal year 2025 budget request, highlighting the agency's challenges amidst rapid market growth. He expressed apprehension over a provision in the House Appropriations Committee's funding bill, which limits funds for enforcing digital asset transaction regulations unless fraud or market manipulation is involved.

Emphasizing the SEC's role in safeguarding market integrity and investor protection, Gensler underscored the necessity of adequate funding to navigate evolving markets and technological advancements, reiterating that the SEC serves as a watchdog for both investors and issuers alike.