SEC Delays Decision on Invesco’s Ethereum Spot ETF Approval
In October last year, Invesco Galaxy submitted a proposal to the United States Securities and Exchange Commission (SEC) for its Ethereum spot ETF. The ETF aims to mirror the performance of the spot price of Ether, with Invesco as the sponsor and Galaxy Digital as the execution agent. However, the SEC has postponed its decision on the approval process for Invesco Galaxy’s ETH Spot ETF, leading to uncertainty in the market.
Key Points:
- Invesco Galaxy filed a proposed rule change in October for its Ethereum spot ETF
- The ETF seeks to reflect the spot price of Ether performance
- SEC delays decision on Invesco Galaxy’s ETF approval, creating uncertainty
The SEC has cited the need for additional time to analyze the concerns and the proposed rule change associated with the ETH spot ETF. As a result, the commission has extended the decision-making period by 60 days, aiming to fully assess the proposal before making a determination.
According to the filing, the SEC has a total of 240 days to review and decide on the application, with a final decision on Invesco Galaxy’s Ethereum Spot ETF expected by July 5, 2024.
Implications of the SEC Delay:
- Increased uncertainty in the crypto market
- Potential impact on other similar ETF proposals
- Extended waiting period for investors and market participants
Invesco Galaxy’s delay in ETF approval adds to a series of setbacks faced by asset management companies seeking spot ETFs, including Blackrock’s postponed Ethereum spot ETF proposal earlier this year. The repeated delays from the SEC have cast doubts on the approval timeline for these exchange-traded products.
Pessimism Surrounding ETH Spot ETFs Approval
Ethereum spot ETFs have been met with skepticism from prominent figures in the crypto industry, contrasting with the positive outlook on Bitcoin spot ETFs. Tron Founder Justin Sun recently expressed doubts about the approval of Ethereum ETFs by the current deadline, citing the need for more education on cryptocurrencies.
Top Figures’ Sentiments:
- Justin Sun expresses disbelief in Ethereum ETF approval by May deadline
- Emphasizes the need for further education on cryptocurrencies
- Decrease in likelihood of acceptance for ETH Spot ETFs
The sentiment regarding ETH spot ETFs has shifted, with the likelihood of approval now standing at only 12%, a substantial decline from the 76% probability recorded earlier this year. This decline in optimism reflects the challenges faced by Ethereum spot ETFs in gaining regulatory approval.
Hot Take: SEC Delays Raise Concerns for ETH Spot ETF Approval
Pessimism surrounding Spot Ethereum ETFs approval is on the rise as the United States Securities and Exchange Commission (SEC) has decided to delay its decision on the approval process of Invesco Galaxy’s ETH Spot ETF. This delay has fueled uncertainty in the crypto market, with implications for investors and market participants awaiting a final ruling from the regulatory watchdog.
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