SEC Delays Decision on Invesco Galaxy’s Application for Spot Ether ETF

The US Securities and Exchange Commission (SEC) has delayed its choice on Invesco Galaxy’s utility for a spot Ether exchange-traded fund (ETF). The SEC has prolonged the overview interval by 60 days, with the brand new deadline set for July 5. This delay is consistent with related postponements affecting all eight potential Ether ETF issuers, together with VanEck, BlackRock, Fidelity, and Franklin Templeton.

Delayed Decision and Review Period Extension

The SEC’s choice on Invesco Galaxy’s utility for a spot Ether ETF has been postponed, giving the fee further time to overview the proposal. The extension of the overview interval by 60 days pushes the brand new deadline for a call to July 5. This delay is a part of a sequence of comparable postponements affecting a number of Ether ETF issuers.

Impact on VanEck’s Ether ETF Application

The last deadline for VanEck’s Ether ETF utility is May 23, which holds specific significance. Analysts have been intently monitoring this deadline because it might present insights into the SEC’s stance on Ether ETFs. The delay within the choice on Invesco Galaxy’s utility provides to the uncertainty surrounding the approval of Ether ETFs.

Skepticism and Regulatory Pressures

Analysts have expressed skepticism in regards to the approval of Ether ETFs, citing regulatory silence and political pressures confronted by SEC Chair Gary Gensler. Senior Bloomberg ETF analyst Eric Balchunas revised down the chance of SEC approval for Ether ETFs from 50% to 35%. The extended interval of regulatory silence and growing political pushback have contributed to the reducing chance of approval.

Optimism and Potential Approval

Despite the skepticism amongst ETF analysts, some stay optimistic in regards to the potential approval of Ether ETFs. Ethereum advocate Anthony Sassano believes that the SEC might nonetheless approve the funds by VanEck’s last deadline. Sassano factors to the SEC’s prior approval of Ether futures ETF merchandise in 2023 and up to date conferences between the regulator, Grayscale, and Coinbase as indicators of potential constructive outcomes for the pending ETF purposes.

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