- The United States Securities and Exchange Commission (SEC) has delayed its decision on the approval of Invesco Galaxy’s ETH Spot ETF, causing increased uncertainty in the crypto market.
- Invesco Galaxy’s Ethereum Spot ETF aims to reflect the performance of the spot price of Ether, but the SEC has declared that additional time is needed to analyze the related concerns and the proposed rule change.
- Notable companies like Blackrock have also experienced delays in their Spot ETF proposals, casting a shadow on the exchange products within the crypto community.
The SEC’s decision to delay the approval of Invesco Galaxy’s ETH Spot ETF has fueled uncertainty in the crypto market, with other notable companies like Blackrock also experiencing similar delays. This article explores the implications of these developments.
SEC Delays Decision on Invesco’s Ethereum Spot ETF
In October last year, Invesco Galaxy filed a proposed rule change to list and trade shares of its Ethereum spot ETF, Commodity-Based Trust Shares, with the SEC under the Securities Exchange Act of 1934 and Rule 19b-4 thereunder, which was published in the Federal Register in November. However, according to a Monday filing, the Commission has decided to postpone its decision on the company’s proposal. The SEC declared that additional time is needed to analyze the related concerns and the proposed rule change, stressing the need for more time to fully assess the spot ETF proposal. Thus, the regulatory watchdog has given an additional 60 days to approve or disapprove the proposal.
Other Companies Face Similar Delays
Invesco Galaxy is the latest asset management company to see its Spot ETF proposal being delayed by the agency. Other notable companies like Blackrock have also encountered the same fate over time. Blackrock’s proposed Spot Ethereum ETF was delayed in March, marking the second time the Commission has postponed the firm’s proposal. This repeated delay from the SEC thus far has cast a dark shadow on the exchange products within the crypto community.
Pessimism Surrounds ETH Spot ETFs
Over time, Ethereum Spot ETFs have seen constant negative sentiment from top figures in the crypto space, unlike Bitcoin, which saw unwavering optimism from these figures. Last Month, Tron Founder Justin Sun expressed his disbelief in the products getting approved by the May 31 deadline. “My honest opinion (NFA) is that an Ethereum ETF won’t be approved in May,” he stated. Sun claims the crypto industry still needs to prepare for a drawn-out education process in order to help authorities and regulators understand cryptocurrency, even though he believes the industry has already reached this stage.
Conclusion
The likelihood of acceptance of the ETH Spot ETFs now stands at a mere 12%, which is a significant decline from the 76% odds recorded in January following the approval of Bitcoin spot ETFs. The SEC’s delay in approving these ETFs has caused increased uncertainty in the crypto market, with the future of these exchange products hanging in the balance.
