New Spot Ethereum ETF Decision Delayed
The United States Securities and Exchange Commission (SEC) has announced a delay in its decision on the joint Ethereum ETF application submitted by Invesco and Galaxy Digital. This delay was anticipated, as the SEC has been postponing several ETF decisions recently. Senior Bloomberg ETF analyst James Seyffart confirmed the delay and expects more delays to come in the near future.
Delays Based on SEC Discretion
The SEC has the authority to extend the public comment period for up to 90 days under Section 19(b)(2) of the Securities Exchange Act. This discretionary power allows the SEC to implement delays in the decision-making process for ETF applications.
Previous Postponements of ETH ETF Decisions
Other Ethereum ETF applications, including Fidelity Investments and BlackRock, have also experienced delays in their decision timelines. The Fidelity Ethereum Fund’s proposed rule change had its deadline extended to March 5, 2024, while BlackRock’s iShares Ethereum Trust decision was postponed until March 10, 2024.
Potential Approval for Spot Ethereum ETFs
Despite the delays, there is optimism among analysts and market experts regarding the approval of spot Ethereum ETFs by the SEC. There is an estimated 60% likelihood of receiving approval despite differing opinions within the market.
Hot Take: Uncertainty Surrounds Spot Ethereum ETF Decision
The SEC’s decision to delay the Invesco and Galaxy Digital spot Ethereum ETF application adds to the uncertainty surrounding these investment products. While there is optimism about potential approval, delays in decision timelines continue to impact market expectations. The May 23, 2024 deadline for VanEck’s spot Ethereum ETF application remains a key date to watch. As the SEC navigates the complexities of the cryptocurrency market, investors eagerly await a definitive decision on spot Ethereum ETFs.
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