The United States Securities and Exchange Commission (SEC) has postponed its decision on Invesco Galaxy’s application for a spot Ether exchange-traded fund (ETF).
In a filing on May 6, the SEC extended the decision deadline by another 60 days, setting the new deadline for July 5. The extension allows the SEC more time to thoroughly review the proposed rule change and related issues.
The SEC has consistently postponed decisions on applications from all eight prospective Ether ETF issuers in recent months, including notable entities like BlackRock, Fidelity, Franklin Templeton, Hashdex, and Ark 21Shares. This aligns with expectations among analysts.
May 23 is regarded as the final deadline for VanEck’s Ether ETF application, considered by Bloomberg ETF analyst James Seyffart as the “only deadline that matters.” The delay has led to downgraded odds of SEC approval for ETFs, with concerns raised regarding regulatory approval by the deadline.
Seyffart’s cautiously optimistic view toward pending Ether ETF applications has shifted, now expecting all applications to be denied by the SEC on May 23. This sentiment is shared by other ETF analysts, citing regulatory uncertainties and political pushback against SEC Chair Gary Gensler.
Despite the consensus among ETF analysts, Ethereum advocate Anthony Sassano maintains optimism regarding the potential approval of the funds by VanEck’s final deadline. He points to the SEC’s approval of Ether futures ETF products in 2023 and recent meetings between regulators and industry stakeholders as reasons for potential approval.
The delay in decision-making by the SEC adds to the uncertainty surrounding the approval of Ether ETFs. While some analysts remain hopeful, others anticipate further challenges in obtaining regulatory approval.
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