SEC Postpones Decision on Invesco Galaxy Ethereum ETF Until July 5th
The Invesco Galaxy Ethereum ETF has hit another roadblock as the U.S. Securities and Exchange Commission (SEC) has decided to delay its decision on the highly anticipated ETF until July 5th, 2024. This is not the first delay, and some experts speculate that the SEC may ultimately reject the ETF. The outcome of the decision in July will have a significant impact on the future of Ethereum ETFs in the United States.
This unexpected move by the SEC has left analysts and investors scrambling to interpret its implications. Will July bring the long-awaited approval, or is this just the first obstacle in a series of challenges? The uncertainty surrounding the situation has sparked curiosity and concern among Ethereum investors.
The SEC’s decision to extend the review period for the Invesco Galaxy Ethereum ETF was announced in a court filing dated May 6, 2024. The proposal for the ETF was initially put forward by the Cboe BZX Exchange. The SEC justifies the extension by stating that it requires more time to carefully evaluate the potential impact of approving the Ethereum ETF in the market.
The journey of Ethereum ETFs began on October 20, 2023, when the Cboe BZX Exchange made its first move. By November 8th, 2023, the proposal was open for public comments. Following the regulatory process, the SEC extended its review process in February 2024, leading to the current wait until July for the final decision.
However, investors should not expect a clear-cut decision in July. The SEC may take a tough stance, and companies like Galaxy and BlackRock could potentially head to court if the decision does not favor them, resulting in a protracted legal battle.
Some experts believe that the SEC’s delay is not simply due to a thorough investigation. They suggest that SEC Chair Gensler’s strict stance on cryptocurrencies, combined with an ongoing examination of Ethereum, known as ‘ETHGate,’ may be contributing factors.
Michael Saylor, the CEO of MicroStrategy and a prominent Bitcoin supporter, recently expressed his belief that the SEC will likely reject Spot Ethereum ETFs.
On July 5, 2024, all eyes will be on the aftermath of this significant decision. Will it trigger a frenzy in the crypto market or cause a shake-up? The outcome of this decision will shape the future of US Ethereum ETFs, and investors eagerly await its resolution.
In the meantime, you may also be interested in exploring the analysis of Hong Kong’s new Spot Bitcoin and Ethereum ETFs during their first week.
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