Invesco Galaxy Ethereum ETF Now Has Approval Deadline Until May

Key Points:

• The SEC delayed its decision on the Invesco Galaxy Ethereum ETF, affecting investor access.
• Concerns over fraud and manipulation stall the approval process for spot Ethereum ETFs.
• The approval timeline for Ethereum ETFs remains unclear, with firms like VanEck awaiting decisions.

The U.S. Securities and Exchange Commission (SEC) has prolonged the evaluation period for a proposed spot Invesco Galaxy Ethereum ETF, according to a filing on Tuesday.

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SEC Delays Decision on Invesco Galaxy Ethereum ETF

This delay marks another setback for the anticipated ETF, which aims to offer investors exposure to Ethereum without direct ownership.

Initially filed in September jointly by Invesco and Galaxy Digital, the Invesco Galaxy Ethereum ETF application is subject to the SEC’s review of a rule change proposed by Cboe BZX to permit the fund’s listing and trading. The regulatory body has sought comments on potential concerns regarding fraud prevention, market manipulation, and investor safeguards.

This extension mirrors similar actions taken on other spot Ethereum ETF proposals, including one from Grayscale Investments last month. The SEC’s inquiries into Ethereum’s proof-of-stake mechanism and potential concentration of control echo its scrutiny of spot Bitcoin ETFs approved in January.

Uncertainty Surrounds Timeline for Ethereum ETF Approval

While comments are due within 21 days, with a 35-day rebuttal period, the exact approval timeline remains uncertain. Analysts speculate approval could range from mid-2024 to early 2026. SEC Chair Gensler’s cautious stance, following recent Bitcoin ETF approvals, suggests a rigorous evaluation process for Ethereum ETFs.

Despite anticipation, no definitive timeline has been provided. Various firms, including BlackRock, Hashdex, ARK 21Shares, VanEck, and Fidelity, await SEC decisions on their spot Ethereum ETF applications. VanEck faces a looming deadline of May 23, indicative of the uncertainty surrounding Ethereum ETF approvals.

While the SEC’s approval of spot Bitcoin ETFs in January saw simultaneous approval of 11 applications, a similar approach for Ethereum ETFs remains speculative. The SEC’s silence on the matter leaves the industry waiting anxiously for clarity on the fate of Ethereum investment products in the U.S. market.