SEC Delays Decision on Invesco Galaxy’s Application for Spot Ether ETF

The
US
Securities
and
Exchange
Commission
(SEC)
has
delayed
its
decision
on
Invesco
Galaxy’s
application
for
a
spot
Ether
exchange-traded
fund
(ETF).
The
SEC
has
extended
the
review
period
by
60
days,
with
the
new
deadline
set
for
July
5.
This
delay
is
in
line
with
similar
postponements
affecting
all
eight
prospective
Ether
ETF
issuers,
including
VanEck,
BlackRock,
Fidelity,
and
Franklin
Templeton.

Delayed
Decision
and
Review
Period
Extension

The
SEC’s
decision
on
Invesco
Galaxy’s
application
for
a
spot
Ether
ETF
has
been
postponed,
giving
the
commission
additional
time
to
review
the
proposal.
The
extension
of
the
review
period
by
60
days
pushes
the
new
deadline
for
a
decision
to
July
5.
This
delay
is
part
of
a
series
of
similar
postponements
affecting
multiple
Ether
ETF
issuers.

Impact
on
VanEck’s
Ether
ETF
Application

The
final
deadline
for
VanEck’s
Ether
ETF
application
is
May
23,
which
holds
particular
significance.
Analysts
have
been
closely
monitoring
this
deadline
as
it
could
provide
insights
into
the
SEC’s
stance
on
Ether
ETFs.
The
delay
in
the
decision
on
Invesco
Galaxy’s
application
adds
to
the
uncertainty
surrounding
the
approval
of
Ether
ETFs.

Skepticism
and
Regulatory
Pressures

Analysts
have
expressed
skepticism
about
the
approval
of
Ether
ETFs,
citing
regulatory
silence
and
political
pressures
faced
by
SEC
Chair
Gary
Gensler.
Senior
Bloomberg
ETF
analyst
Eric
Balchunas
revised
down
the
likelihood
of
SEC
approval
for
Ether
ETFs
from
50%
to
35%.
The
prolonged
period
of
regulatory
silence
and
increasing
political
pushback
have
contributed
to
the
decreasing
likelihood
of
approval.

Optimism
and
Potential
Approval

Despite
the
skepticism
among
ETF
analysts,
some
remain
optimistic
about
the
potential
approval
of
Ether
ETFs.
Ethereum
advocate
Anthony
Sassano
believes
that
the
SEC
could
still
approve
the
funds
by
VanEck’s
final
deadline.
Sassano
points
to
the
SEC’s
prior
approval
of
Ether
futures
ETF
products
in
2023
and
recent
meetings
between
the
regulator,
Grayscale,
and
Coinbase
as
indicators
of
potential
positive
outcomes
for
the
pending
ETF
applications.

Image
source:
Shutterstock

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