Gensler Predicts Ethereum ETFs Approval by ‘End of Summer’

Crypto markets tumbled after yesterday’s Fed statement revealed that policymakers now expect a single rate cut this year.

By: Mehab Qureshi Loading...

stylized Ethereum logos

Crypto markets dropped on Thursday despite SEC Chair Gary Gensler saying that Ethereum ETFs will likely be approved by “the end of the summer” in testimony given to a subcommittee of the Senate Appropriations Committee on Thursday.

Bitcoin and Ethereum traded around 4% lower, while Solana dropped 7%, according to CoinGecko data.

ETH Price chart
ETH Price

The SEC has already granted initial approval to several Ethereum ETF issuers, including VanEck and BlackRock. Once their pending S-1 forms are approved, these new ETFs can begin trading.

The bearish price action comes in spite of recent economic data indicating easing U.S. inflation. The producer price index (PPI), which assesses what wholesalers pay for raw materials, declined by 0.2% in May. Economists polled by Dow Jones had anticipated a PPI increase of 0.1%. The report came on the heels of May’s consumer price index (CPI) figures, released Thursday, which showed slower growth than anticipated.

Michaël van de Poppe, founder and CEO of MN Trading, expects Bitcoin to rally.

"PPI data is out," he said. "This is ideal for potential rate cuts, which I expect will lead to a positive market reaction for Bitcoin."

Data from CoinGlass shows that over 61,156 traders were liquidated in the past 24 hours, for a total of $198.72 million.

Looking ahead, QCP Capital shared a positive outlook on U.S. financial policy for the rest of 2024.

"FED's dot plot remains ambiguous, making it challenging to predict whether officials prefer one or two rate cuts this year," the firm wrote on its Telegram channel. "However, we anticipate a rate cut in September, with the FED likely adopting a wait-and-see approach for subsequent meetings in November and December."

In the broader financial markets, the S&P 500 traded 0.2% higher, while the Nasdaq Composite increased by 0.6%, and the Dow Jones Industrial Average fell by 0.4%.