SEC Extends Deadline for Invesco Galaxy Spot Ethereum ETF Decision
US SEC extended the deadline for a decision to approve Invesco Galaxy spot Ethereum ETF following previous application postponements.
United States Securities and Exchange Commission (SEC) extended the deadline for deciding to approve or disapprove the proposed Invesco Galaxy spot Ethereum exchange-traded fund (ETF). The regulatory body had previously postponed a decision on the fund in December. According to the SEC’s recent announcement, it is “instituting proceedings” concerning this matter.
The agency further stated in a filing that the initiation of proceedings is deemed suitable due to the proposed rule change’s legal and policy issues. Additionally, the SEC has outlined a timeline for comments on the Invesco Galaxy Ethereum ETF, specifying 21 days for initial comments, followed by a rebuttal period lasting 35 days.
The agency extended the deadline for the spot Ethereum ETF proposal from the asset management company Grayscale Investments last month, following the prior extension of the timeframe for the decision on the proposal from Fidelity and BlackRock.
The SEC raised similar inquiries as it did with Grayscale, seeking clarification on the implications of Ethereum’s proof-of-stake (PoW) mechanism and the potential risks associated with the “concentration of control or influence by a few individuals or entities.”
Future for Spot Ethereum ETF Approvals
The approval status and timeline for spot Ethereum ETFs by the agency have yet to be definitively determined, creating uncertainty regarding when it might occur.
Bloomberg analyst James Seyffart observed that the SEC’s decision to postpone the verdict on the Invesco Galaxy spot Ethereum ETF aligns entirely with expectations. He anticipates a continued trend of further delayed decisions in the upcoming months, emphasizing that, at present, the pivotal date for the Ethereum spot ETF is May 23rd.
However, Nikolaos Panigirtzoglou, Managing Director at JP Morgan, notes that for the SEC to grant approvals in May, Ethereum must be classified as a commodity, similar to Bitcoin, rather than a security. This classification is still being determined, and Nikolaos Panigirtzoglou assigned a 50% chance to the SEC designating Ethereum as a commodity before May.
Recently, SEC Chair Gary Gensler noted that the agency’s decision last month to approve eleven spot Bitcoin ETFs was specific to that particular cryptocurrency and should not be interpreted as indicative of a broader approval trend for other assets.
The SEC’s recent actions and statements reflect a cautious approach and ongoing uncertainties regarding the approval of spot Ethereum ETFs, with analysts predicting continued delays and specific considerations for Ethereum’s regulatory classification.
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