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SEC Delays Decision on Invesco and Galaxy Digital’s Spot Ether ETF

February 8, 2024 | by stockcoin.net

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The United States Securities and Exchange Commission (SEC) has once again postponed its decision on the proposed Invesco and Galaxy Digital’s Spot Ether ETF. The application, which sought to launch the Invesco Galaxy Ethereum ETF, has now been pushed to potentially July 2024 after the SEC opened the proposal to public comments. This delay comes amidst a growing interest in cryptocurrency ETFs following the SEC’s recent approval of spot bitcoin ETFs. However, analysts remain optimistic about the potential approval of a spot ether ETF, citing the SEC’s silence on whether Ethereum (ETH) is considered a security as a positive sign. The approval of such an ETF would mark a significant milestone in integrating cryptocurrencies into mainstream financial markets.

SEC Delays Decision on Invesco and Galaxy Digitals Spot Ether ETF

SEC Delays Decision on Invesco and Galaxy Digital’s Spot Ether ETF

The United States Securities and Exchange Commission (SEC) has recently announced a delay in its decision regarding the Invesco and Galaxy Digital’s Spot Ethereum ETF. This delay has pushed the potential ruling date to July 2024 and has sparked discussions and speculations within the cryptocurrency community.

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Invesco and Galaxy Spot Ethereum ETF Decision Delayed by SEC

The SEC has once again postponed its verdict on the proposed spot ether ETF, which is a collaboration between Invesco and Galaxy Digital. The ETF was planned to be launched on the Cboe BZX Exchange. The delay has left the investment giants, as well as the cryptocurrency market, waiting for a final ruling.

SEC Opens the Proposal to Public Commentary

In a notice dated February 6, the SEC made it known that they will open the proposal to public commentary. This move will extend the decision-making period by an additional 35 days from its publication in the Federal Register. By doing this, the SEC is allowing the public to have a say and share their thoughts and concerns about the proposed ETF.

Decision-Making Period Extended by 35 Days

With the proposal now open to public commentary, the decision-making period has been extended by 35 days. This decision to extend the period gives the SEC more time to gather information and consider the various perspectives shared by the public during this time. It shows that the SEC is taking the matter seriously and wants to make an informed decision.

Final Potential Deadline for SEC’s Ruling is July 2024

As a result of the delay and the extension of the decision-making period, the final potential deadline for the SEC’s ruling on the Invesco and Galaxy Spot Ethereum ETF is now July 2024. This timeline provides a clear expectation for the market participants and allows them to prepare accordingly.

Wave of Interest in Cryptocurrency ETFs

The delay in the decision on the Invesco and Galaxy Spot Ethereum ETF comes at a time when there is a significant wave of interest in cryptocurrency ETFs. Following the SEC’s landmark approval of spot bitcoin ETFs from asset managers like Blackrock and Fidelity, the market has seen increased interest in other similar products. The potential approval of a spot ether ETF could further fuel this growing interest.

Landmark Approval of Spot Bitcoin ETFs

The recent approval of spot bitcoin ETFs by the SEC was seen as a turning point for cryptocurrency investments. This approval demonstrated a growing acceptance and recognition of cryptocurrencies in the traditional financial market. The approval of spot bitcoin ETFs also generated significant investor interest, suggesting a strong market appetite for similar products based on other cryptocurrencies like ethereum.

Analyst’s Commentary on the Delay

James Seyffart, a Bloomberg ETF analyst, has commented on the delay of the Invesco and Galaxy Spot Ethereum ETF. Seyffart stated that the delay was expected and predicted further postponements in the coming months. He also highlighted May 23 as a critical date, as it marks the deadline for a decision on Vaneck’s spot ether ETF application. This decision could provide insight into the SEC’s approach to other similar products.

Spot Ether ETF’s Approval Contrasts with Spot Bitcoin ETFs

The SEC’s hesitancy to approve a spot ether ETF contrasts with its recent approval of spot bitcoin ETFs. This contrast has raised questions within the cryptocurrency community about the SEC’s criteria and considerations for approving ETFs based on different cryptocurrencies. The differing approach highlights the complexities and nuances involved in regulating and approving such investment products.

Optimism for Approval of Spot Ether ETF by May

Despite the delay, analysts, including those from Standard Chartered, have expressed optimism that a spot ether ETF could be approved by May. They believe that the SEC’s silence on whether ethereum is considered a security is a positive sign. This lack of designation could potentially pave the way for ETF approvals, given the SEC’s history of cracking down on crypto companies for selling unregulated securities.

ETFs as a Less Complex Route to Cryptocurrency Investment

ETFs offer traditional investors a less complex route to cryptocurrency investment. By buying shares that track the price of digital assets like ethereum, investors can participate in the cryptocurrency market without the need for direct purchase or storage. The potential approval of a spot ether ETF is seen as a significant step towards integrating cryptocurrencies into mainstream financial markets.

Pattern of Delaying Decisions on Cryptocurrency ETFs

The SEC’s pattern of delaying decisions on cryptocurrency ETFs has been consistent. This year, several applications for spot ether ETFs from leading firms have been pushed back. While this delay may be frustrating for market participants, it is essential to acknowledge that the SEC has a responsibility to thoroughly evaluate the risks and implications of introducing new investment products into the market.

In conclusion, the recent delay in the decision on the Invesco and Galaxy Spot Ethereum ETF by the SEC has sparked discussions and raised questions within the cryptocurrency community. The SEC’s decision to open the proposal to public commentary and extend the decision-making period indicates a meticulous approach to evaluating the potential risks and benefits of the ETF. Market participants remain optimistic about the approval of a spot ether ETF and the continued integration of cryptocurrencies into mainstream financial markets.

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