SEC Delays Galaxy Invesco Ethereum ETF Decision to July

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SEC Delays Galaxy Invesco Ethereum ETF Decision to July

Last updated on May 18th, 2024 at 11:38 am

The United States Securities and Exchange Commission (SEC) has announced a further delay in its decision regarding Galaxy Invesco’s application for a spot Ethereum exchange-traded fund (ETF). The SEC has extended the deadline for its decision by another 60 days, pushing the new deadline to July 5. This delay comes amidst a series of postponements for similar applications from various prospective Ether ETF issuers, including BlackRock, Fidelity, Franklin Templeton, Hashdex, and Ark 21Shares.

Analysts had anticipated these delays, aligning with the SEC’s cautious approach towards cryptocurrency-related financial products. The regulatory body cited the need for additional time to evaluate the proposed rule change and the associated issues raised. This decision reflects the SEC’s thorough review process and its commitment to ensuring investor protection and market stability.

Read Also: Ripple vs. SEC: Legal Battle Escalates as Deadline Nears for SEC’s Reply Brief

Analysts Speculate on SEC’s Stance On Ethereum ETF

ETF analysts have expressed mixed sentiments regarding the likelihood of SEC approval for Ethereum ETFs. Bloomberg ETF analyst James Seyffart had previously highlighted May 23 as a critical deadline for VanEck’s Ether ETF application, emphasizing its significance within the industry. However, there has been a downward shift in confidence among analysts regarding the approval prospects.

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Senior Bloomberg ETF analyst Eric Balchunas revised his odds of SEC approval from 50% to 35%, citing prolonged silence from the regulatory body and increasing political scrutiny faced by SEC Chair Gary Gensler. Balchunas suggested that these factors could contribute to a more stringent approval process, potentially leading to denials for all Ether ETF applications.

Ethereum Advocates Remain Optimistic

Despite the prevailing skepticism among analysts, Ethereum advocates like Anthony Sassano maintain optimism regarding the SEC’s decision. Sassano pointed to the agency’s previous approval of Ether futures ETF products and highlighted a recent meeting between the SEC, crypto asset management firm Grayscale, and crypto exchange Coinbase as potential indicators of a favorable outcome.

Sassano’s confidence stems from the regulatory precedent set by the approval of Ether futures ETFs, indicating a growing acceptance of Ethereum within traditional financial markets. Additionally, the engagement between key industry stakeholders and regulatory authorities suggests a willingness to address concerns and explore potential avenues for ETF approval.

As the SEC extends its deliberation period for Galaxy Invesco’s Ethereum ETF application, industry participants continue to monitor developments closely. The outcome of these deliberations will not only impact Galaxy Invesco but also set a precedent for other Ether ETF applicants awaiting regulatory approval.

In the interim, stakeholders may seek to engage with regulatory authorities to address any concerns and advocate for a favorable decision. Additionally, ongoing market developments and industry trends may influence the SEC’s perspective on Ethereum ETFs, shaping the regulatory landscape for digital asset investment products.

Read Also: Jack Dorsey Steps Away from Bluesky, Shifts Focus to Musk’s X and Decentralized Tech

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Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. I write extensively on topics such as blockchain, cryptocurrency, tokens, and more for many publications. My goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.