SEC Delays Another Spot Ethereum ETF: What Will Happen to ETH ETFs?

  • In September, Invesco joined the crypto ETF race and decided to launch the Invesco Galaxy Ethereum ETF in collaboration with Galaxy Digital Funds.
  • In terms of delays, Invesco is not the only asset manager receiving such news from the SEC regarding its application.
  • The SEC has sought public feedback on Fidelity’s proposed rule change for a similar product, and the asset manager is still awaiting a decision from the regulator.

In an unexpected turn of events, the SEC, deciding on Invesco and Galaxy Digital’s Ethereum ETF, extends the deadline for Ethereum ETFs.

SEC Delays Galaxy’s Ethereum ETF

SEC

The decision on Invesco and Galaxy Digital’s Ethereum ETF was not expected until December 23, but in a new twist reported by Bloomberg ETF analyst James Seyffart, the SEC has delayed its decision on this application.

In September, Invesco joined the crypto ETF race and decided to launch the Invesco Galaxy Ethereum ETF in collaboration with Galaxy Digital Funds. This ETF was planned to directly hold Ethereum (ETH), making it different from several Ethereum futures ETFs that are about to start operating soon. In particular, Invesco and Galaxy had previously submitted a joint physically-backed Bitcoin ETF application before finally withdrawing it.

“We have decided not to follow the imminent short-term launch of a Bitcoin futures ETF; however, we will continue our efforts to offer investors a range of products exposing them to this transformative asset class by continuing to collaborate with Galaxy Digital, including a physically backed digital asset ETF,” Invesco explained. However, this is indeed a dynamic turn for the Ethereum spot ETF.

SEC Delays Multiple ETF Applications

In terms of delays, Invesco is not the only asset manager receiving such news from the SEC regarding its application. A week ago, the SEC announced a 45-day extension to decide on the Grayscale Ethereum Trust’s application for a spot ETF. This meant that the expected decision, originally due by December 6, 2023, was no longer valid, and the new deadline had been moved to January 25, 2024.

Meanwhile, the SEC has requested public feedback on Fidelity’s proposed rule change for a similar product, and the asset manager is still awaiting a decision from regulators. Additionally, the broader crypto industry is expecting the SEC to make a positive decision on spot Bitcoin ETF applications submitted by BlackRock, Fidelity, WisdomTree, and many other companies. They believe that the SEC will likely make a favorable decision on these applications just before the expected application stack in January, potentially approving a spot Bitcoin ETF in the United States for the first time.

BREAKING NEWS

Roam Introduces Token Output Difficulty Adjustment Mechanism with Automatic 1,000-Cycle Readjustments to Stabilize Token Price

Roam has officially announced the Token Output Difficulty Adjustment...

MERL Breaks $0.58 on 4-Hour Rally as Futures-Spot Gap Reaches 45% and Bearish Funding Rate at -0.18625%

COINOTAG News, October 26, citing market data, notes that...

Ethereum (ETH) Trader Faces $12.56M Loss After Oct 11 Crash, Left with $1.13M Including $680k Unrealized ETH Gains

COINOTAG News reports on October 26 that a high‑risk...
spot_imgspot_imgspot_img

Related Articles

spot_imgspot_imgspot_imgspot_img

Popular Categories

spot_imgspot_imgspot_img