Key takeaways:
- The US SEC has postponed deciding whether to accept or reject a spot Ether ETF that was put up by Galaxy Digital and Invesco.
- After Invesco and Galaxy Digital “reactivated” their application for a spot Bitcoin ETF in June, they filed for a spot ETH ETF in September.
The United States Securities and Exchange Commission has postponed deciding whether to accept or reject a spot Ether Exchange Traded Fund (ETF) that was put up by Galaxy Digital and Invesco.
The SEC announced on December 13 that it would extend the time frame for deciding whether to accept or reject a proposed rule change that would enable the Cboe BZX Exchange to list and trade shares of the Invesco Galaxy Ethereum ETF.
The Commission, which has not yet approved an ETF with direct exposure to Bitcoin or other cryptocurrencies, is currently considering a number of investment vehicles, including the proposed spot crypto investment vehicle. The notice stated:
“The 45th day after publication of the notice for this proposed rule change is December 23, 2023. The Commission is extending this 45-day time period,”
After Invesco and Galaxy Digital “reactivated” their application for a spot Bitcoin ETF in June, they filed for a spot ETH ETF in September. Suppose the SEC ultimately chooses to allow a spot crypto ETF, whether it includes Bitcoin or Ether. In that case, several experts have theorized that it may do so while receiving simultaneous approvals of funds from several firms.
BlackRock, Hashdex, ARK 21Shares, VanEck, and Fidelity were among the companies that submitted applications for spot crypto ETFs. Several asset managers’ representatives met with commission officials to discuss the ETF offers, according to memos that the SEC has made public during the past 30 days.
The US regulatory organization that oversees accounting procedures, the Financial Accounting Regulations Board (FASB), has released long-awaited regulations that are a critical step towards enhancing the transparency of financial reporting for certain crypto assets. These regulations, which are slated to go into effect for fiscal years starting after December 15, 2024, provide fair-value accounting for specific cryptocurrencies included on company balance sheets.
