The U.S. Securities and Exchange Commission Delays Review of Invesco Galaxy’s Ethereum Spot ETF
The U.S. Securities and Exchange Commission (SEC) has decided to postpone its evaluation of the Invesco Galaxy Ethereum (ETH) spot ETF. The new deadline for the review is set for February 6, extending the timeline for the Cboe BZX Exchange to potentially list and trade shares of the Invesco Galaxy Ethereum ETF.
“The 45th day after publication of the notice for this proposed rule change is December 23, 2023. The Commission is extending this 45-day time period.”
SEC
In September, Invesco and Galaxy Digital jointly filed an application with the SEC to launch an Ethereum-based ETF. This ETF would track the spot price of ETH, the second-largest cryptocurrency by market capitalization. The custody of ETH will be entrusted to a separate custodian, although no specific custodian has been named yet. The SEC was originally expected to make a decision on the application by December 23.
SEC Delays Grayscale’s Application for ETH Spot ETF
In addition to Invesco, Grayscale’s application to launch a spot ETF on ETH will also face a delay in consideration by the SEC. The Commission has stated that it lacks sufficient time to conduct a thorough analysis of spot Ethereum ETFs and will not be able to review Grayscale’s application until late 2023.
SEC Chairman Gary Gensler has previously emphasized that these prolonged approval processes are necessary due to the comprehensive risk assessments associated with the U.S. financial system.
Hot Take: SEC Delays Decision on Ethereum Spot ETFs
The U.S. Securities and Exchange Commission has once again delayed its decision on Ethereum spot ETFs, impacting both Invesco Galaxy and Grayscale’s applications. The SEC requires more time to thoroughly assess the risks involved in launching these ETFs. This extension further highlights the cautious approach taken by SEC Chairman Gary Gensler when it comes to approving crypto-related investment products. As the wait continues, market participants eagerly anticipate the eventual approval of an Ethereum spot ETF, which could provide greater accessibility and mainstream adoption of the second-largest cryptocurrency.
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