SEC Postpones Decision on Ethereum ETF: Impact on ETH’s Market Dynamics

  • The U.S. Securities and Exchange Commission (SEC) has postponed its decision on the Invesco Galaxy spot Ethereum ETF proposal.
  • The SEC has extended the decision-making period by an additional 60 days, following similar actions taken on spot Ethereum ETF proposals by Franklin Templeton and Grayscale.
  • Despite these delays, BlackRock CEO Larry Fink remains optimistic about the possibility of launching a spot Ethereum ETF.

The SEC extends its decision-making period on the Invesco Galaxy spot Ethereum ETF proposal, amidst speculation that it may deny similar proposals from VanEck and ARK.

SEC Delays Decision on Invesco Galaxy Spot Ethereum ETF Proposal

The U.S. Securities and Exchange Commission has once again delayed its decision on a spot Ethereum ETF proposal, this time from Invesco Galaxy. This move follows similar actions taken on proposals from Franklin Templeton and Grayscale last month. The regulator has now extended the decision-making period by an additional 60 days.

Predictions of Denial for VanEck and ARK Proposals

According to a report by Reuters, citing industry insiders, the SEC is expected to deny Ethereum ETFs proposed by VanEck and ARK later this month. These predictions stem from a perceived lack of engagement from the SEC, which was not the case prior to the approval of Bitcoin ETFs. Analysts suggest that the SEC may reject these ETFs for mechanical reasons, with Bitwise’s Matt Hougan predicting that the regulator will request more data.

Legal Battle with Consensys and Potential for Spot Ethereum ETF Launch

The SEC is currently embroiled in a legal dispute with key Ethereum backer Consensys, following the regulator’s decision to label the leading altcoin as a security. Despite this, BlackRock CEO Larry Fink has stated that it is still possible to launch a spot Ethereum ETF, even if the underlying cryptocurrency were to be classified as an unregistered security.

Conclusion

The SEC’s decision to delay its verdict on the Invesco Galaxy spot Ethereum ETF proposal marks another instance of the regulator’s cautious approach towards Ethereum ETFs. While the outcome of these proposals remains uncertain, the ongoing legal battle with Consensys and the potential classification of Ethereum as an unregistered security add further complexity to the situation. Despite these challenges, industry leaders like BlackRock’s Larry Fink remain optimistic about the future of Ethereum ETFs.

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