SEC Delays Decision on Invesco Galaxy Ethereum ETF
The United States Securities and Exchange Commission (SEC) has announced that it is delaying its decision on the Invesco Galaxy Ethereum exchange-traded fund (ETF) until 2024. The SEC had until December 23, 2023, to make a decision on the ETF.
SEC Extends Time Period for Rule Change
In a notice issued on December 13, 2023, the SEC stated that it would extend the time period to approve or disapprove the proposed rule change made by the Cboe BZX Exchange. This rule change is necessary for the listing and trading of shares of the Invesco Galaxy Ethereum ETF. The SEC was required to take action within 45 days of the proposal being published in the Federal Register on November 8, 2023.
The SEC has yet to approve any exchange-traded funds that offer direct exposure to cryptocurrencies like Bitcoin and Ethereum. The decision on the Invesco Galaxy Ethereum ETF has now been pushed to February 6, 2024.
The Significance of the Invesco Galaxy Ethereum ETF
The potential listing of the Invesco Galaxy Ethereum ETF could have a significant impact on the wider crypto market. Invesco and Galaxy Digital filed their spot Ether ETF application in September. Invesco had previously filed for a spot Bitcoin ETF and reactivated its application shortly after WisdomTree filed its application for a spot Bitcoin ETF.
If the SEC approves a spot ETF, whether for Bitcoin or Ethereum, it is speculated that it would also approve multiple applications from various firms simultaneously.
Other Pending ETF Applications
The SEC’s decision to delay its ruling comes at a time when several ETF applications are pending. Major financial institutions like BlackRock, VanEck, Ark21Shares, Fidelity, and Hashdex have submitted ETF applications.
Representatives from asset managers like BlackRock, Fidelity, Franklin Templeton, and Grayscale have met with the SEC to discuss their ETF offerings. These meetings are seen as positive developments and suggest that discussions about ETF applications are progressing.
Hot Take: SEC Delays Decision on Invesco Galaxy Ethereum ETF to 2024
The SEC’s decision to postpone its ruling on the Invesco Galaxy Ethereum ETF until 2024 raises questions about the regulatory environment for cryptocurrency-related investment products. As the debate around ETFs continues, investors are anxiously awaiting the approval of these funds, which could open up new avenues for mainstream adoption of cryptocurrencies. The delay underscores the need for further clarity and guidance from regulatory bodies like the SEC to encourage innovation and responsible investment in the crypto market.
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