The U.S. Securities and Exchange Commission (SEC) has announced a delay in its decision on Invesco Galaxy’s spot Ethereum exchange-traded fund (ETF) application. Originally expected to be decided by December 23, 2023, the new deadline for the decision has been set for February 6, 2024. The SEC cited the need for additional time to review the proposal and the issues raised in the filing.
Background of the ETF Application
In September, Invesco and Galaxy Digital submitted an application for the spot Ethereum ETF. The goal of their ETF is to track the performance of the spot price of ether by holding units of the cryptocurrency with a separate custodian. This application is one among several spot Ethereum ETF applications submitted to the SEC by major financial institutions, including BlackRock, ARK, Fidelity, VanEck, and Hashdex. All of these applications are awaiting final decisions.
Implications and Discussions
The SEC has been engaging with major Bitcoin ETF issuers, including BlackRock, Grayscale, Franklin, and Fidelity. These discussions have brought renewed momentum to the topic of spot Bitcoin ETF approvals. Analyst James Seyffart from Bloomberg Intelligence suggests that the SEC might consider approving multiple applications simultaneously to ensure fair competition among competitors.
“The repeated engagements and strategic amendments to applications, such as BlackRock’s inclusion of cash purchases for new fund shares, reflect a concerted effort to align with regulatory expectations,” says James Seyffart.
The outcome of the SEC’s review process holds significant importance for the crypto community, as it could potentially mark a pivotal moment in the history of cryptocurrencies. As the SEC continues its deliberations, industry players eagerly await the final decision.
