SEC Delays Invesco Galaxy Ethereum ETF Decision Until July 5
The Invesco Galaxy Ethereum ETF faces an extended deadline for approval by the U.S. Securities and Exchange Commission (SEC), which has piqued the interest of investors and market analysts.
According to the SEC’s recent court filing on May 6, 2024, the Commission has determined that additional time is necessary to review the proposal for the Invesco Galaxy Ethereum ETF, initially submitted by Cboe BZX Exchange.
The announcement has pushed back the review period for deciding on the Ethereum ETFs until July 5, 2024. The SEC cites the need for more time to consider the implications of approving the Ethereum ETF in the market as the reason for the extension.
The filing states, “The Commission finds that it is appropriate to designate a longer period within which to issue an order approving or disapproving the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised therein.”
The journey of the Ethereum ETFs began on October 20, 2023, when Cboe BZX Exchange filed the initial request with the SEC. The proposal was then opened for public comment on November 8, 2023.
Following standard procedure, the SEC extended its review period in February 2024 and has now extended its decision until July of this year.
It is important to note that a definitive decision should not be expected in July. It is likely that the SEC will deny the proposal, followed by an appeal from Galaxy, BlackRock, or another applicant, leading to a lengthy legal process.
In conclusion, while the SEC’s extension of the review period for the Invesco Galaxy Ethereum ETF may seem like a thorough investigation, market experts believe that the true reason for the delay is SEC Chair Gary Gensler’s tough stance on cryptocurrencies and the ongoing investigation into Ethereum, also known as ‘ETHGate.’
Michael Saylor, CEO of MicroStrategy and a prominent Bitcoin advocate, recently stated in a speech that he believes the SEC will likely reject Spot Ethereum ETFs.
On July 5, 2024, all eyes will be on the impact of this decision.
Also Check Out:
Analysis of Hong Kong’s New Spot Bitcoin and Ethereum ETFs in the First Week.
Tags:
SEC