SEC Delays Decision on Invesco and Galaxy Spot Ethereum ETF
The Securities and Exchange Commission (SEC) has once again postponed its ruling on the proposed Invesco Galaxy ether exchange-traded fund (ETF). This delay affects the application by investment giants Invesco and Galaxy Digital, who were planning to launch the Invesco Galaxy Ethereum ETF on the Cboe BZX Exchange.
SEC Opens Proposal to Public Commentary
In a notice dated Feb. 6, the SEC announced that it will open the proposal to public comments, extending the decision-making period by an additional 35 days. The SEC has the option to push the final decision up to 240 days, meaning the potential deadline for the ruling is July 2024.
Interest in Cryptocurrency ETFs
Interest in cryptocurrency ETFs has been growing, especially after the SEC approved spot bitcoin ETFs from asset managers like Blackrock and Fidelity. These approvals have sparked investor interest in similar products based on ethereum.
Analyst Predicts Further Delays
Analyst James Seyffart expects further delays in the coming months and highlights May 23 as a critical date for a decision on Vaneck’s spot ether ETF application.
Potential Approval by May
Some analysts, including those from Standard Chartered, are optimistic that a spot ether ETF could be approved by May. They point to the SEC’s silence on whether ETH is considered a security as a positive sign.
Benefits of ETFs
ETFs provide a simpler route for traditional investors to enter the cryptocurrency market. They allow investors to buy shares that track the price of digital assets like ethereum without directly purchasing or storing them.
SEC’s Consistent Delaying Pattern
The SEC has consistently delayed decisions on cryptocurrency ETFs, with multiple applications for spot ether ETFs being pushed back this year.
Hot Take: SEC Pushes Decision on Invesco and Galaxy Spot Ethereum ETF
The SEC’s decision to delay its ruling on the Invesco Galaxy ether ETF, potentially until July 2024, reflects the regulatory agency’s cautious approach to cryptocurrency investments. While it has recently approved spot bitcoin ETFs, it has shown hesitancy towards spot ether ETFs. However, there is optimism that a spot ether ETF could be approved by May, given the SEC’s silence on whether ETH is considered a security. The approval of such ETFs would be a significant milestone in mainstream adoption of cryptocurrencies and provide traditional investors with easier access to the digital asset market.
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