SEC Delays Decision on Invesco Galaxy's Application for Spot Ether ETF
Jessie A Ellis May 07, 2024 10:34
The US SEC has extended the review period for Invesco Galaxy's application for a spot Ether ETF, with the deadline set for July 5. This follows similar delays for eight other potential Ether ETF issuers, including VanEck. Analysts express skepticism.
The US Securities and Exchange Commission (SEC) has delayed its decision on Invesco Galaxy's application for a spot Ether exchange-traded fund (ETF). The SEC has extended the review period by 60 days, with the new deadline set for July 5. This delay is in line with similar postponements affecting all eight prospective Ether ETF issuers, including VanEck, BlackRock, Fidelity, and Franklin Templeton.
Delayed Decision and Review Period Extension
The SEC's decision on Invesco Galaxy's application for a spot Ether ETF has been postponed, giving the commission additional time to review the proposal. The extension of the review period by 60 days pushes the new deadline for a decision to July 5. This delay is part of a series of similar postponements affecting multiple Ether ETF issuers.
Impact on VanEck's Ether ETF Application
The final deadline for VanEck's Ether ETF application is May 23, which holds particular significance. Analysts have been closely monitoring this deadline as it could provide insights into the SEC's stance on Ether ETFs. The delay in the decision on Invesco Galaxy's application adds to the uncertainty surrounding the approval of Ether ETFs.
Skepticism and Regulatory Pressures
Analysts have expressed skepticism about the approval of Ether ETFs, citing regulatory silence and political pressures faced by SEC Chair Gary Gensler. Senior Bloomberg ETF analyst Eric Balchunas revised down the likelihood of SEC approval for Ether ETFs from 50% to 35%. The prolonged period of regulatory silence and increasing political pushback have contributed to the decreasing likelihood of approval.
Optimism and Potential Approval
Despite the skepticism among ETF analysts, some remain optimistic about the potential approval of Ether ETFs. Ethereum advocate Anthony Sassano believes that the SEC could still approve the funds by VanEck's final deadline. Sassano points to the SEC's prior approval of Ether futures ETF products in 2023 and recent meetings between the regulator, Grayscale, and Coinbase as indicators of potential positive outcomes for the pending ETF applications.
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