(Bloomberg) — Final approval of exchange-traded funds tied to Ether, the world's second-most popular digital asset, could come this summer, Securities and Exchange Commission Chairman Gary Gensler told lawmakers.
“Individual issuers are still working through the registration process which is running smoothly,” Gensler said during a hearing Thursday before a Senate Appropriations subcommittee.
Gensler's remarks are another indication that the long-awaited launch of Ether ETFs may be closer. The SEC approved an initial round of applications last month from several commodity trading exchanges.
Read more: Why the Crypto Market Is Betting on Spot-Ether ETFs: The QuickTake
Final approval of a small number of issuer registration statements depends on the quality of investor disclosure. The process is being handled at the staff level, he said. The agency cleared the launch of spot Bitcoin ETFs in January.
Gensler was answering questions from Sen. Bill Hagerty, a Tennessee Republican and ranking member of the Senate Financial Services Appropriations and General Government Subcommittee. “Ether should be approved as well, fully,” Hagerty said of the ETF applications.
Read more: US Paves the Way for Ether ETFs to Test Demand Beyond Bitcoin
Fund managers at companies including VanEck Associates, ARK Investment Management, BlackRock Inc. and Fidelity Investments would still need SEC approval to make the new asset class a reality.