SEC postpones Galaxy spot Ethereum ETF decision to July

The U.S. Securities and Exchange Commission (SEC) has postponed its decision on Galaxy Invesco’s application for a spot Ethereum (ETH) exchange-traded fund (ETF).

In a filing on May 6, the SEC gave the Galaxy ETF 60 more days to make a decision, with the next deadline set for July 5.

The SEC stated that “the Commission has determined that it is appropriate to specify a longer period for issuing an order approving or disapproving a proposed rule change to allow sufficient time to consider the proposed rule change and the issues raised therein.” I wrote:

In recent months, the SEC has postponed decisions on applications from eight would-be Ether ETF issuers, including BlackRock, Fidelity, Franklin Templeton, Hashdex and Ark 21Shares, in line with analyst expectations.

May 23 is the final deadline to apply for VanEck’s Ether ETF, “the only deadline that matters,” Bloomberg ETF analyst James Seyffart said in a March 20 report. post.

In March, Bloomberg ETF analyst Eric Balchunas lowered the odds of the SEC approving the ETF from 50% to 35%. This was due to a lack of confidence that regulators would approve VanEck’s bid by the final deadline.

Related: SEC will classify Ethereum as a security and reject spot Ethereum ETF — Michael Saylor

In a March 12 interview with Cointelegraph, Balchunas said the SEC’s prolonged “radio silence” on prospective fund issuers and the growing political backlash against SEC Chairman Gary Gensler have reduced the likelihood of approval. was cited as the cause.

Seyffart said his “cautiously optimistic” attitude toward the pending Ether ETF application has changed. As of March 20, he expects all applications for an Ether ETF to be “ultimately rejected” by the SEC on May 23.

Despite this consensus from ETF analysts, Ethereum advocate Anthony Sassano said he remains confident regulators will be able to approve the funds by VanEck’s final deadline.

Looking at the agency’s approval of an Ethereum futures ETF product last year, Sassano cited the March 9 meeting between the regulator, crypto asset management firm Grayscale and cryptocurrency exchange Coinbase as another reason the SEC may still approve the application. I mentioned it.

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