SEC Delays Decision on Invesco Galaxy Spot Ethereum ETF

CryptoNews.com

2024-05-06 21:32:20

Tanzeel Akhtar

Last updated:

May 7, 2024 01:32 EDT | 1 min read

SEC Delays Decision on Invesco Galaxy Spot Ethereum ETF The Securities and Exchange Commission (SEC) has announced a delay in its decision regarding the Invesco Galaxy spot Ethereum exchange-traded fund (ETF).

In an announcement, the SEC said the next deadline is July 5, 2024, by which the commission will either approve or disapprove the Ethereum ETF.

“The Commission finds that it is appropriate to designate a longer period within which to

issue an order approving or disapproving the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised therein,” said the SEC in the filing shared on May 6.

Franklin Templeton’s Eth ETF Decision Delayed

In April, the SEC announced a delay in its decision regarding Franklin Templeton’s proposed spot Ethereum ETF, extending the deadline to June 11, 2024. This news comes from a filing made public, leaving the future of this financial product uncertain for the time being.

There are several issuers which have filed applications for Ethereum ETFs including BlackRock, 21Shares with Ark, Fidelity, and Invesco together with Galaxy, Grayscale, VanEck, Hashdex and Franklin Templeton.

SEC Expected to Deny Spot ETH ETF Apps May 23-24

In March, the SEC delayed a decision to approve the BlackRock spot Ethereum ETF. The SEC now has until May 23 to approve or reject VanEck’s ETF application for an Ethereum ETF tracking the world’s second-largest cryptocurrency.

Analysts from Bloomberg Intelligence have said, “Many analysts have speculated that the SEC will reach a final decision on whether to approve or deny a spot Ether ETF for listing and trading on U.S. exchanges in May, during deadlines for applications from several asset managers.”

However, the recent SEC delays have tempered expectations. Bloomberg Intelligence analyst James Seyffart has expressed scepticism, suggesting the current round of Ether ETF applications might ultimately be denied.

In April, it emerged Ethereum developer firm Consensys, managed by Joe Lubin, filed a lawsuit against the SEC over its “overzealous regulation” around the Ethereum blockchain.

In an announcement on social media platform X, Lubin said Consensys has taken an important step towards “preserving access to ether and, by extension, the Ethereum blockchain in the U.S. We are suing the SEC and fighting back against its overzealous regulatory overreach.”

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