The Securities and Exchange Commission (SEC) has postponed its verdict on the proposed Invesco Galaxy spot Ethereum exchange-traded fund (ETF).
In a recent statement, the SEC set the new deadline to July 5, 2024, for making a decision to either approve or reject the Ethereum ETF.
“The Commission believes it is necessary to extend the timeline to allow ample time to review the proposed rule change and address any concerns that have arisen,” the SEC explained in the document released on May 6.
Franklin Templeton’s Eth ETF Decision Delayed
In April, the SEC postponed its decision on the proposed spot Ethereum ETF from Franklin Templeton, moving the deadline to June 11, 2024. The delay, announced in a public filing, leaves the fate of this financial product in limbo for now.
Several entities have submitted applications for Ethereum ETFs, including major players like BlackRock, 21Shares in collaboration with Ark, Fidelity, and a joint effort from Invesco and Galaxy. Other applicants include Grayscale, VanEck, Hashdex, and Franklin Templeton.
SEC Expected to Deny Spot ETH ETF Apps May 23-24
In March, the Securities and Exchange Commission (SEC) postponed its decision on BlackRock’s application for a spot Ethereum ETF. The SEC has now set a new deadline of May 23 to decide on VanEck’s application for an ETF that would track Ethereum, the world’s second-largest cryptocurrency.
Bloomberg Intelligence analysts have suggested that the SEC might finalize its decision on the approval or denial of spot Ether ETFs during May, coinciding with the deadlines for multiple asset manager applications. However, the continued postponements by the SEC have dampened expectations. Bloomberg Intelligence analyst James Seyffart has expressed skepticism, indicating that the current batch of Ether ETF applications may likely be rejected.
In a recent development, Ethereum development company Consensys, led by Joe Lubin, filed a lawsuit against the SEC, accusing it of “overzealous regulation” concerning the Ethereum blockchain. Lubin announced on the social media platform X that Consensys is challenging the SEC’s regulatory overreach as a crucial move to safeguard access to ether and, more broadly, the Ethereum blockchain in the U.S.
