SEC Delays Decision on Invesco and Galaxy Digital’s Spot Ether ETF
The United States Securities and Exchange Commission (SEC) has announced a delay in its decision on whether to approve or disapprove a spot Ether exchange-traded fund (ETF) proposed by Invesco and Galaxy Digital. The SEC will extend the time period for consideration of a proposed rule change that would allow the Cboe BZX Exchange to list and trade shares of the Invesco Galaxy Ethereum ETF.
Implications for the Crypto Market
Should the SEC eventually approve a spot crypto ETF, it could potentially pave the way for simultaneous approvals of funds from other firms. Currently, there are several applications for spot crypto ETFs pending, including those from BlackRock, Hashdex, ARK 21Shares, VanEck, and Fidelity. The SEC has been engaging with asset managers’ representatives to discuss these offerings.
Hot Take: Delayed Decision Reflects Regulatory Caution
The SEC’s decision to delay its ruling on the spot Ether ETF indicates ongoing regulatory caution regarding cryptocurrency investment vehicles. While this move was expected, it underscores the need for further evaluation and consideration before approving such products. The delay also prolongs uncertainty in the market, as investors await regulatory clarity on crypto ETFs. However, if approved in the future, a spot crypto ETF could have a significant impact on the crypto industry by increasing accessibility and mainstream adoption.
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