The proposed spot Ether exchange-traded fund (ETF) from Invesco and Galaxy Digital will face a prolonged decision-making process by the U.S. Securities and Exchange Commission (SEC). This move comes after the SEC’s approval of spot Bitcoin ETFs. The SEC has decided to allow for additional assessment, extending the deadline by 35 days upon the proposal’s publication in the Federal Register.
The SEC has announced that it intends to institute proceedings to evaluate whether to approve or reject a proposed rule amendment. This amendment aims to enable the Cboe BZX Exchange to list and trade shares of the Invesco Galaxy Ethereum ETF. By opening the proposal to public commentary, the SEC seeks to gather further insights before making a decision. The delay tactic could extend the decision-making process for up to 240 days, with a final verdict expected by July 2024.
Following the SEC’s approval of spot Bitcoin ETFs, several asset managers, including BlackRock, Hashdex, ARK 21Shares, VanEck, and Fidelity, have submitted their own applications for spot ETH ETFs. This has further diversified the market and increased competition. While the SEC reviews these applications, industry observers are closely monitoring any signals or indications from the regulatory body regarding its stance on Ethereum ETFs.
The SEC’s approach to approving spot BTC ETFs involved simultaneous approval of 11 applications, leading to speculation about a similar strategy for spot ETH investment vehicles. However, the SEC has not disclosed its plans, leaving experts to speculate on potential outcomes. Among the applicants, VanEck has a deadline set for May 23, and the market is eagerly awaiting any indications of the SEC’s stance on Ether ETFs and its potential impact on the broader cryptocurrency market.
