The United States Securities and Exchange Commission (SEC) has once again postponed its ruling on the proposed Invesco Galaxy ether exchange-traded fund (ETF). The decision has now been pushed to potentially July 2024 after the SEC opened the proposal to public comments.
Background
The delay affects the application by investment giants Invesco and Galaxy Digital, who had planned to launch the Invesco Galaxy Ethereum ETF on the Cboe BZX Exchange. The SEC announced on February 6 that it would extend the decision-making period by an additional 35 days, allowing for public commentary. The final ruling can be pushed up to 240 days from the filing date in October 2023, meaning the potential deadline is July 2024.
Interest in cryptocurrency ETFs has been on the rise, especially after the SEC's approval of spot bitcoin ETFs from asset managers like Blackrock and Fidelity. These ETFs began trading on January 10, generating significant investor interest.
Analyst's Perspective
James Seyffart, a Bloomberg ETF analyst, has commented on the delay, stating that it was expected and predicting further postponements in the coming months. He highlighted May 23 as a critical date, as it marks the deadline for a decision on Vaneck's spot ether ETF application. The outcome of this application could indicate the SEC's approach to other similar products.
Some analysts, including those from British bank Standard Chartered, remain optimistic that a spot ether ETF could be approved by May. They point to the SEC's silence on whether ETH is considered a security as a positive sign. The lack of a security designation for ETH could pave the way for ETF approvals, considering the SEC's history of cracking down on crypto companies selling unregulated securities.
Importance of ETF Approval
ETFs offer traditional investors a simpler way to invest in cryptocurrencies. They can buy shares that track the price of digital assets like ethereum without the need for direct purchase or storage. The approval of a spot ether ETF is seen as a crucial step in integrating cryptocurrencies into mainstream financial markets.
Conclusion
The SEC's delay in approving a spot ether ETF contrasts with its recent approval of spot bitcoin ETFs. However, the market remains hopeful that a spot ether ETF could be approved by May, given the SEC's silence on ETH's security status. The decision on Vaneck's spot ether ETF application on May 23 will provide further insight into the SEC's stance on similar products. The delay does not necessarily change the chances of a spot ether ETF being approved this year.
What are your thoughts on this delay? Share your opinions in the comments section below.
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By: David Sencil
Title: SEC Delays Decision on Invesco Galaxy Ether ETF
Sourced From: news.bitcoin.com/sec-delays-decision-on-invesco-and-galaxy-digitals-spot-ether-etf/
Published Date: Wed, 07 Feb 2024 23:30:52 +0000
