SEC Delays Decision on Invesco Galaxy’s Spot Ether ETF Application
The U.S. Securities and Exchange Commission (SEC) has postponed its decision on Invesco Galaxy’s application for a spot Ethereum exchange-traded fund (ETF). The SEC extended the review period by 60 days and a new deadline is set for July 5. This delay is consistent with similar delays affecting all eight potential Ether ETF issuers, including VanEck, BlackRock, Fidelity, and Franklin Templeton.
Delayed decisions and extended review periods
The SEC’s decision on Invesco Galaxy’s application for a spot Ether ETF has been delayed, giving the committee more time to review the proposal. The 60-day extension of the review period extends the deadline for a new decision to July 5. This delay is part of a series of similar delays affecting several Ether ETF issuers.
Impact on VanEck’s Ether ETF Application
The final deadline to apply for VanEck’s Ether ETF is May 23, which is particularly significant. Analysts have been closely monitoring this deadline, which could provide insight into the SEC’s stance on the Ether ETF. The delay in Invesco Galaxy’s application decision adds to uncertainty surrounding Ether ETF approval.
Skepticism and regulatory pressure
Analysts have expressed skepticism about approving an Ethereum ETF, citing regulatory silence and political pressure faced by SEC Chairman Gary Gensler. Bloomberg ETF analyst Eric Balchunas downgraded the likelihood of SEC approval for the Ether ETF from 50% to 35%. Prolonged regulatory silence and growing political backlash have reduced the chances of approval.
Optimism and Potential Approval
Despite skepticism from ETF analysts, some remain optimistic about the chances of approval of an Ether ETF. Ethereum advocate Anthony Sassano believes the SEC could approve the funds by VanEck’s final deadline. Sassano points to the SEC’s prior approval of a 2023 ether futures ETF product and recent meetings between regulators, Grayscale and Coinbase as indicators of a potential positive outcome for the pending ETF application.
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