{"id":14333,"date":"2024-06-14T09:47:06","date_gmt":"2024-06-14T06:47:06","guid":{"rendered":"https:\/\/forklog.com\/en\/gary-gensler-predicts-timeline-for-ethereum-etf-s-1-approvals\/"},"modified":"2024-06-14T09:47:06","modified_gmt":"2024-06-14T06:47:06","slug":"gary-gensler-predicts-timeline-for-ethereum-etf-s-1-approvals","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/gary-gensler-predicts-timeline-for-ethereum-etf-s-1-approvals\/","title":{"rendered":"Gary Gensler Predicts Timeline for Ethereum-ETF S-1 Approvals"},"content":{"rendered":"<div class=\"wp-block-text-wrappers-keypoints article_keypoints\">\n<ul class=\"wp-block-list\">\n<li>The SEC head suggested the registration of S-1 forms for an ETH-ETF could occur by summer&#8217;s end.<\/li>\n<li>The absence of staking in an Ethereum-based ETF may limit institutional demand for the product.<\/li>\n<li>JPMorgan expressed doubts about sustaining high inflows into BTC-ETFs.<\/li>\n<\/ul>\n<\/div>\n<p>Approval of the S-1 for an Ethereum-ETF is possible &#8220;by the end of this summer,&#8221; according to SEC Chairman Gary Gensler, reports <a href=\"https:\/\/www.theblock.co\/post\/300021\/gensler-says-ethereum-etf-s-1-approvals-likely-over-the-course-of-this-summer\">The Block<\/a>.<\/p>\n<p>The official outlined the timeline in response to lawmakers&#8217; questions during hearings in the U.S. Senate Appropriations Committee.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>&#8220;Individual issuers are still going through the registration process. Everything is going smoothly,&#8221;<\/em> Gensler explained.<\/p>\n<\/blockquote>\n<p>On May 23, the Commission <a href=\"https:\/\/u1f987.com\/en\/news\/sec-approves-spot-ethereum-etfs-key-developments\">approved<\/a> 19b-4 proposals from issuers of spot Ethereum-based ETFs. Trading will commence once the agency signs the S-1 registration statements.<\/p>\n<p>Senator William Hagerty of Tennessee criticized Gensler for creating &#8220;roadblocks&#8221; that force crypto companies to leave the U.S.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>&#8220;You are not prioritizing rule-making in areas that urgently need it. [\u2026]. Other jurisdictions are setting them. [\u2026] With the SEC and <span data-descr=\"U.S. Commodity Futures Trading Commission\" class=\"old_tooltip\">CFTC<\/span>, we face constant obstacles and a lack of clarity,&#8221;<\/em> he lamented.<\/p>\n<\/blockquote>\n<p>A report presented on June 13 by Coinbase and The Block showed a decline in the share of U.S.-based firms from 40% to 26% over the past five years.<\/p>\n<h2 class=\"wp-block-heading\"><strong>Staking as an Advantage<\/strong><\/h2>\n<p>In an <a href=\"https:\/\/www.theblock.co\/post\/299681\/spot-ethereum-etf-institutional-interest\">interview<\/a> with the publication, cryptocurrency trader Gordon Grant noted a decline in institutional investor interest in ETH-ETF due to issuers&#8217; refusal to integrate staking into the product.<\/p>\n<p>The expert suggested that many would consider purchasing the instrument only after the implementation of the staking option. Until then, major players will prefer on-chain alternatives.<\/p>\n<p>According to Grant, unlike Bitcoin, direct ownership of Ethereum offers institutions a more significant yield advantage compared to ETH-ETF.<\/p>\n<p>In May, issuers excluded the staking option from products due to the risk of the second-largest cryptocurrency by market cap being classified as a security. JPMorgan predicted significantly lower demand for these instruments compared to digital gold-based ETFs.<\/p>\n<p>They believe that by the end of 2024, net inflows into ETH-ETF will range from $1 billion to $3 billion. However, this figure could triple if issuers reinstate staking at some point.<\/p>\n<p>Earlier, Animoca Brands co-founder Yat Siu <a href=\"https:\/\/www.theblock.co\/post\/299048\/hong-kong-ethereum-etf-staking-animoca\">stated<\/a> that Hong Kong might allow the staking option in Ethereum-based ETFs. A positive outcome is &#8220;almost a foregone conclusion,&#8221; he added.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;If there are no significant developments in staking within a year, I would say that the election outcome will be another determining factor in how quickly this happens in the U.S.,&#8221; the expert commented.<\/p>\n<\/blockquote>\n<h2 class=\"wp-block-heading\"><strong>JPMorgan&#8217;s Skeptics<\/strong><\/h2>\n<p>An inflow into spot Bitcoin-ETFs amounting to $15.5 billion may not continue, according to <a href=\"https:\/\/www.theblock.co\/post\/300004\/jpmorgan-crypto-inflows-skeptical\">JPMorgan<\/a>.<\/p>\n<p>Specialists explained their skepticism by citing the current high prices of digital gold relative to its traditional counterpart and the cost of mining.<\/p>\n<p>They stated that if the current trend persists, the net inflow for the year as a whole will be approximately $26 billion.<\/p>\n<p>Experts emphasized that many investors may have shifted from holding coins on <span data-descr=\"centralized exchanges\" class=\"old_tooltip\">CEX<\/span> in favor of ETFs due to economic efficiency, liquidity, and regulatory advantages.<\/p>\n<p>This shift is evident in the reduction of Bitcoin reserves on exchanges by 220,000 BTC (~$13 billion) since the launch of exchange-traded products in January.<\/p>\n<p>With adjustments, the net inflow into ETFs amounts to approximately $12 billion.<\/p>\n<p>In May, JPMorgan <a href=\"https:\/\/u1f987.com\/en\/news\/jpmorgan-maintains-cautious-outlook-on-cryptocurrency-prospects\">stated<\/a> a &#8220;cautious&#8221; stance on cryptocurrencies for the near term due to a lack of drivers and declining retail investor interest.<\/p>\n<p>Earlier, 10x Research predicted a Bitcoin rally thanks to the policies of the <span data-descr=\"Federal Reserve System\" class=\"old_tooltip\">Fed<\/span>.<\/p>\n<p>Before that, former BitMEX CEO Arthur Hayes noted a change in the macroeconomic backdrop and urged buying the first cryptocurrency.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The SEC head suggested the registration of S-1 forms for an ETH-ETF could occur by summer&#8217;s end. The absence of staking in an Ethereum-based ETF may limit institutional demand for the product. JPMorgan expressed doubts about sustaining high inflows into BTC-ETFs. Approval of the S-1 for an Ethereum-ETF is possible &#8220;by the end of this [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":14332,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[18,46,229,1150,36,128,1230,26],"class_list":["post-14333","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-bitcoin","tag-ethereum","tag-jpmorgan","tag-news-plus","tag-regulation","tag-sec","tag-us-congress","tag-usa"],"aioseo_notices":[],"amp_enabled":true,"views":"15","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/14333","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=14333"}],"version-history":[{"count":0,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/14333\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/14332"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=14333"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=14333"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=14333"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}