SEC Postpones Decision on Invesco and Galaxy’s Spot Ethereum ETF

The U.S. Securities and Exchange Commission (SEC) has delayed its decision on the application for a spot Ethereum ETF by Invesco and Galaxy.

The agency had previously postponed the review date for several funds. This time, the SEC also announced the “initiation of proceedings” to gather additional public information regarding the listing of investment products.

“The initiation of proceedings is currently appropriate in view of the legal and policy issues raised by the proposed rule change. […] This does not indicate that the Commission has reached any conclusions with respect to any of the issues involved,” the SEC stated.

According to the documents, comments on the Ethereum ETF from Invesco and Galaxy must be submitted within 21 days, and the rebuttal period will last 35 days.

Bloomberg analyst James Seyffart remarked that the regulator’s decision was “100% expected.”

SEC just delayed @InvescoUS & @galaxyhq‘s #Ethereum ETF. 100% expected and more delays will continue to happen in coming months.

The only date that matters for spot #ethereum ETFs at this time is May 23rd. Which is @vaneck_us‘s final deadline date pic.twitter.com/gkVZL2QuPK

— James Seyffart (@JSeyff) February 6, 2024

“The only date that matters for spot ETH ETFs at this time is May 23rd. This is the final deadline for VanEck’s application,” the expert clarified.

In the past 24 hours, the second-largest cryptocurrency by market capitalization has risen by 2.2%, according to CoinGecko. At the time of writing, its price stands at $2361.

Back in November 2023, BlackRock submitted an application to the regulator for a spot Ethereum ETF.

In the same month, CoinShares analysts noted asset managers’ interest in Ethereum.

Later, Standard Chartered predicted the approval of a spot ETH ETF in May and projected the asset’s growth to $4000 by that time.