Invesco Galaxy Misses Spot Ethereum ETF S-1 Deadline, Will Approval Be Delayed?

In a surprising turn of events, investment firm Invesco Galaxy has missed the July 8 deadline to file its amended S-1 form for a Spot Ethereum ETF. This development comes as other major players in the industry, including VanEck, Bitwise, BlackRock, Fidelity, and Franklin Templeton, successfully submitted their amendments to the United States Securities and Exchange Commission (SEC) on time.

Invesco Galaxy Misses S-1 Deadline For Spot Ethereum ETF

Earlier, last month, the SEC had requested these amendments after returning the initial S-1 registrations from Spot Ethereum ETF filers with “a few light comments.” Hence, filers were expected to address these comments and resubmit their documents by the given deadline.

Nate Geraci, President of ETF Store, noted the absence of Invesco Galaxy’s filing. He commented on X (formerly known as Twitter), “Only amendment I didn’t see today was Invesco Galaxy eth ETF… Perhaps will post to SEC site in morning. Otherwise, all other issuers are in & now we wait on SEC.”

However, he still expressed optimism toward the anticipated Spot Ethereum ETF launch next week. He added, “Still think next week looks most likely for launch. Notable Grayscale set July 18 as creation date for Mini Trust.” Moreover, Grayscale setting the date for its Mini Ethereum Trust, has also added to the optimism.

On the flip side, this lapse by Invesco Galaxy raises questions about the potential delay in the approval process. With other firms like VanEck and Bitwise moving forward efficiently, any delay could impact Invesco Galaxy’s competitive standing in the race to launch a spot Ethereum ETF.

VanEck, for example, has already filed its amended S-1 and aims to trade under the “ETHV” ticker. According to industry experts, VanEck is nearing a final approval date. The SEC had previously approved the 19b-4 filings of eight potential issuers in May, with the final S-1 application expected to be approved by summer. SEC Chairman Gary Gensler has pointed to this timeline as firms finalize their investment vehicles.

Furthermore, VanEck has also unveiled a competitive fee of 0.20% for its Ether ETF, which has led investors to anticipate low fee from all issuers. Meanwhile, Bitwise filed its S-1 amendment last week, including a 6-month waiver of up to $500 million. This proactive approach demonstrates the firm’s readiness to capitalize on the market’s growing interest in Ethereum ETFs.

Also Read: 21Shares Files Updated S-1 Amendment For Spot Ethereum ETF

Will Approval Be Delayed?

Moreover, Geraci remarked that institutions are “gearing up for a potential launch in a week or two.” Furthermore, Grayscale Investments has also made significant strides with the Mini Ethereum Trust distribution date.

It announced July 18, 2024 as the record date for the initial creation and distribution of shares of the Grayscale Ethereum Mini Trust (ETH Trust). This move is expected to increase the value for existing shareholders of Grayscale Ethereum Trust (ETHE). Grayscale’s approach to expanding its crypto investment products portfolio could set a precedent for other firms in the industry.

In contrast, Invesco Galaxy’s delay could lead to regulatory setbacks. The SEC’s thorough review process, combined with Invesco Galaxy’s missed deadline, may push back their approval timeline. This situation underscores the importance of timely compliance with regulatory requirements in the highly competitive and fast-evolving crypto investment landscape.

The market’s response to these developments has been swift. Social media platforms are abuzz with speculation about the impact of Invesco Galaxy’s missed deadline on the broader Ethereum ETF approval timeline. Investors are eagerly awaiting updates from the SEC and potential adjustments in the fee structures of the anticipated ETFs.

The next steps for Invesco Galaxy will be crucial. Filing their amended S-1 as soon as possible is imperative to stay in the race. Failure to do so could result in lost opportunities and diminished investor confidence. However, in the latest update, Invesco Galaxy submitted their Spot Ethereum ETF S-1 amendment on July 9 morning just as Geraci had predicted. Moreover, they unveiled a competitive fee of 0.25%.

Also Read: Grayscale Announces Distribution Date for ‘Mini’ Ethereum ETF Shares