Invesco Galaxy Ethereum ETF Delayed By SEC Until July 5

Key Points:

• SEC delayed the decision on Invesco Galaxy Ethereum ETF until July 5, 2024.
• Uncertainties persist as the SEC postpones rulings on Ethereum ETFs.
• Analysts reduce spot Ethereum ETF approval odds amid regulatory ambiguity.

The United States Securities and Exchange Commission (SEC) has extended its decision deadline for the Invesco Galaxy Ethereum ETF to July 5, 2024.

SEC Extends Deadline for Invesco Galaxy Ethereum ETF Decision

This postponement allows the agency ample time to thoroughly review the ETF proposal and associated concerns, as stated in a filing released on Monday. The SEC has been postponing decisions on spot Ethereum ETFs from various applicants, including Grayscale, Franklin Templeton, VanEck, and BlackRock.

The agency previously deferred action on the Invesco Galaxy Ethereum ETF and solicited public comments in February. Market optimism for such products has waned in recent months, with Bloomberg ETF analyst Eric Balchunas lowering the probability of spot Ethereum ETF approval from about 70% to 25% by late May.

Analysts Lower Odds for Spot Ethereum ETF Approval Amidst Regulatory Ambiguity

SEC intensified its regulatory scrutiny of the spot Ethereum ETF from Franklin Templeton, extending the deadline to June 10. Analysts remain watchful for expected decisions in May regarding spot Ether ETFs, although regulatory complexities surrounding Ether’s security classification may lead to rejections.

The SEC’s delays have tempered expectations within the investment community regarding the imminent introduction of Ethereum-based ETFs. Regulatory uncertainties persist despite the approval of a spot Bitcoin ETF earlier this year. The SEC’s cautious stance on cryptocurrency ETFs reflects broader regulatory ambiguity surrounding the classification and regulation of Ether and other crypto assets.

The SEC’s decision to extend the deadline aligns with analyst predictions, with May 23 marking the final deadline for VanEck’s Ether ETF application.