Spot Ethereum ETF: SEC Delays Decision on Invesco Galaxy’s Application

Godfrey Benjamin
February 7, 2024
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Here's Why US Spot Ethereum ETFs See Largest $79M in Outflows Since July?

Highlights

  • Invesco Galaxy spot Ethereum ETF decision delayed by US SEC
  • Other potential issuers have also gotten their applications delayed
  • Most important deadline to watch out for now is May 23

The United States Securities and Exchange Commission (SEC) has decided to delay its decision on Invesco and Galaxy’s spot Ethereum ETF application.

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New Spot Ethereum ETF Date in View

Senior Bloomberg ETF analyst James Seyffart shared on X that the U.S. regulator has pushed back its decision on the joint Ethereum ETF application submitted by Invesco and Galaxy Digital. The move from the securities watchdog was expected, as are many other delays that might be inked shortly, per Seyffart’s post.

Notably, implementing such delays is a major discretion of the SEC based on Section 19(b)(2) of the Securities Exchange Act. The Commission has the authority to extend the 45 days of publication for public comment period by up to 90 days if deemed necessary.

Other ETH ETF filers had previously had the verdict of their applications for a spot ETH ETF postponed by SEC. About two weeks ago, the SEC postponed a decision on the spot Ethereum ETF proposed by Fidelity Investments that involves listing and trading of shares of the Fidelity Ethereum Fund under BZX Rule 14.11(e)(4). 

This meant an extension of the review period for the proposed rule change by up to 45 days. Hence, instead of the original deadline of January 20, 2024 for the proposed rule change related to the Fidelity’s Fund, the new deadline is now March 5, 2024.

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More Delays, is Approval Imminent?

BlackRock also had its decision for spot ETH ETF postponed by the U.S. SEC to March 10, 2024. The regulator claimed that the asset manager’s iShares Ethereum Trust has yet to receive any feedback from the public since it was published on the Federal Register, mandating the need for additional time.

Noteworthy, Fidelity and BlackRock’s spot Ethereum ETF application decision are still open to further delay. Therefore, the only date that seems to have a surety for spot Ethereum ETF at this time is May 23, 2024. This is the time for VanEck’s final deadline for a decision from the SEC.

Analysts and several market experts are very optimistic about the possibility of the industry receiving spot Ethereum ETF approval from the U.S. watchdog. There is currently an estimated 60% likelihood of getting a greenlight from the SEC for spot Ethereum ETFs despite the divisions from market experts.

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture. Follow him on X, Linkedin
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.