Bitrabo Editorial
The approval outlook for Spot Ethereum ETFs is facing a setback with the recent decision by the United States Securities and Exchange Commission (SEC) to postpone its verdict on the approval process of Invesco Galaxy’s ETH Spot ETF, adding to uncertainties in the cryptocurrency market.
SEC Delays Invesco’s Ethereum Spot ETF
In October of last year, Invesco Galaxy submitted a proposed rule change to list and trade shares of its Ethereum spot ETF, Commodity-Based Trust Shares, with the SEC under the Securities Exchange Act of 1934 and Rule 19b-4 thereunder. The proposal was published in the Federal Register in November.
The aim of Invesco Galaxy’s Ethereum Spot ETF is to mirror the performance of the spot price of Ether by holding ETH units with a different custodian. The sponsoring entity is Invesco, and Galaxy Digital serves as the execution agent responsible for selling ETH to cover the Trust’s expenses. However, the Commission announced its decision to delay the proposal.
The SEC mentioned the need for more time to assess the concerns related to the proposed rule change thoroughly, thus granting an additional 60 days to either approve or disapprove the proposal.
According to the filing, the SEC has a total of 240 days from the publishing date to make extensions before reaching a final decision on Invesco Galaxy’s Ethereum Spot ETF, anticipated by July 5, 2024.
In a trend observed with other asset management companies, like Blackrock, Invesco Galaxy also faced a postponement in its Spot ETF proposal.
Blackrock’s proposed Spot Ethereum ETF encountered a delay in March, marking the second postponement by the Commission. These repeated delays have raised concerns within the crypto community about exchange products.
ETH Spot ETFs Encounter Skepticism from Key Crypto Figures
Ethereum Spot ETFs have consistently been met with skepticism from influential figures in the crypto sector, contrasting with the unwavering support for Bitcoin. Tron Founder, Justin Sun, expressed doubts about the approval of such products by the May 31 deadline, emphasizing the need for better education on cryptocurrencies for regulators.
Currently, the likelihood of approval for ETH Spot ETFs stands at 12%, a significant drop from the 76% odds in January following the Bitcoin spot ETF approvals.