Key Takeaways:
- The SEC has rescheduled its decision on Invesco’s proposed spot ether ETF to July 5, 2024.
- Optimism surrounding the likelihood of SEC approval for such a product has decreased in recent months.
The United States Securities and Exchange Commission (SEC) has pushed back its ruling on the Invesco Galaxy Ethereum ETF to July 5, 2024.
This extension grants the agency more time to thoroughly assess the ETF proposal and address associated concerns.
The SEC’s recent filing extends the review period for Galaxy Invesco’s Ethereum ETF application by an additional 60 days, citing the need for adequate consideration of the proposal and related issues.
This delay reflects the ongoing complexity of regulatory actions and their impact on the crypto market.
(SOURCE)
This postponement follows a pattern of similar delays, with the SEC previously deferring its decision on the ETF and soliciting public feedback in February.
Comparable extensions have also been granted to other spot Ethereum ETF proposals from major financial institutions, including Grayscale, Franklin Templeton, VanEck, and BlackRock, in recent weeks.
Optimism surrounding the approval of a spot Ethereum ETF has dwindled, with industry analysts adjusting their expectations accordingly.
Bloomberg ETF analyst Eric Balchunas noted a significant decrease in the likelihood of SEC approval, from about 70% to just 25% by late May. This shift in sentiment mirrors broader market sentiment, which remains eager for innovative financial products while grappling with regulatory uncertainty.
Additional skepticism from financial analysts like Michaël van de Poppe and MicroStrategy CEO Michael Saylor has added to the uncertainty. Their cautious outlook underscores the regulatory hurdles that must be navigated for the approval of Ethereum ETFs in the near term.
The announcement comes amid submissions from industry giants like Cboe Global Markets and Bitwise seeking SEC approval for their filings.
May 23 marks the final deadline for VanEck’s Ether ETF application, with analysts suggesting it as the pivotal date. However, Bloomberg ETF analyst James Seyffart and others have significantly lowered the probability of approval, citing ongoing regulatory ambiguity.
Todd Rosenbluth, head of ETF analysis at VettaFi, anticipates further delays, suggesting that approval may be postponed until 2024 or beyond due to the uncertain regulatory landscape.
As the crypto market progresses, regulatory determinations from organizations like the SEC will significantly influence its trajectory. Currently, the community observes with anticipation, desiring a regulatory structure that encourages innovation while upholding market stability and safeguarding investors.
