Good news for Ethereum ETFs. Now it's just a matter of rebounding and reaching new highs?

"We expect to approve an Ethereum (ETH) spot ETF sometime this summer," said US Securities and Exchange Commission (SEC) Chairman Gary Gensler, who has a huge influence on the crypto market, during a Senate Appropriations Committee hearing. "In the U.S., summer typically means June through August," crypto media outlet UBlockchain explained. "Gensler remained unclear when asked if he views Ethereum as a commodity," CoinDesk reported. At the same hearing, Commodity Futures Trading Commission (CFTC) Chairman Rostin Bennum said yes, Ethereum is a commodity."

Meanwhile, the news hasn't made a difference in the slumping crypto market. After Gary Gensler's summer approval announcement, Ethereum gained about 1%, only to lose more than 3% in less than an hour, which was used as an opportunity to sell. Bitcoin also fell about 5%, trading at $66,300, its lowest level in a week.

Meanwhile, U.S. Commodity Futures Trading Commission (CFTC) Chairman Rostin Behnam said at a Senate Appropriations Committee hearing, where he appeared alongside Chairman Gary Gensler, that the agency "can take on greater responsibilities related to cryptocurrencies." "The CFTC's authority is limited. The CFTC's authority is currently limited to fraud and manipulation. It can only pursue issues raised through surveillance, oversight, whistleblowers, and complaints." "Over the past decade, the CFTC has handled 135 cryptocurrency cases despite having no direct authority or jurisdiction," he said. "The CFTC is already well-equipped to oversee the market. However, it needs additional funding to gain authority over the cryptocurrency market." "I don't think we need to stray too far from existing law," he said, referring to the possibility that existing KYC/AML regulations could apply.

While the approval of an Ethereum ETF is still unclear, speculation has been growing about a third ETF to follow Ethereum's lead. "BTC, ETH, and other digital asset ETFs have a long way to go before they are approved in the U.S.," said James Seifat, an analyst specializing in ETFs at Bloomberg. However, he added, "SOL is the best bet for the next ETF. However, it will likely be a few years before we see the next altcoin ETF. Even if an issuer were to apply for an ETF tomorrow, the SEC would not make a decision until March 2025." "The U.S. election could have a positive impact on the likelihood of another crypto ETF. While this could speed up the process, another altcoin ETF is likely to take months to years."