Blockchain
SEC Delays Decision on Invesco Galaxy Application for Spot Ether ETF
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 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 potential Ether ETF issuers, including VanEck, BlackRock, Fidelity and Franklin Templeton.
Delayed decision and extension of review period
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 60-day review period moves the new deadline for a decision to July 5. This delay is part of a series of similar delays affecting several Ether ETF issuers.
Impact on demand for VanEck’s Ether ETF
The final application deadline for VanEck’s Ether ETF is May 23, which is of particular significance. Analysts have been closely monitoring this deadline as it could provide insight 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 normative pressures
Analysts have expressed skepticism about the approval of Ether ETFs, citing regulatory silence and political pressure faced by SEC Chairman Gary Gensler. Eric Balchunas, senior ETF analyst at Bloomberg, revised down the probability of SEC approval for Ether ETFs from 50% to 35%. The prolonged period of regulatory silence and growing political resistance have contributed to decreasing the likelihood of approval.
Optimism and potential approval
Despite skepticism among ETF analysts, some remain optimistic about the potential approval of Ether ETFs. Ethereum advocate Anthony Sassano believes 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 pending ETF applications.
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