The Securities and Exchange Commission (SEC) has announced a delay in its decision on the Ethereum exchange-traded fund (ETF) Invesco Galaxy Spot.
In an announcement, the SEC said the next deadline is July 5, 2024, by which time the commission will either approve or reject the Ethereum ETF.
“The Commission believes it is appropriate to set a longer period within which
to issue an order approving or disapproving the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised by it,” the SEC said in the filing shared on May 6.
Franklin Templeton’s Ethereum ETF decision delayed
In April, the SEC announced a delay in its decision on the Ethereum spot ETF proposed by Franklin Templeton, extending the deadline to June 11, 2024. This news comes from a publicly disclosed filing and leaves the future of this financial product uncertain for now.
There are several issuers that have filed applications for Ethereum ETFs, including BlackRock, 21Shares with Ark, Fidelity and Invesco along with Galaxy, Grayscale, VanEck, Hashdex and Franklin Templeton.
SEC expected to reject applications for spot ETH ETFs on May 23 and 24
In March, the SEC delayed a decision on whether to approve the BlackRock Spot Ethereum ETF. The SEC now has until May 23 to approve or deny VanEck’s ETF application for an Ethereum ETF on the world’s second-largest cryptocurrency.
Analysts at Bloomberg Intelligence said: “Many analysts have speculated that the SEC will make a final decision on whether to approve or reject a spot ether ETF for listing and trading on U.S. exchanges in May, during the filing deadlines of several asset managers.”
However, recent delays by the SEC have dampened expectations, with Bloomberg Intelligence analyst James Seyffart expressing skepticism that the current round of Ether ETF applications could ultimately be rejected.
In April, it was announced that Ethereum developer firm Consensys, led by Joe Lubin, filed a lawsuit against the SEC for its “overzealous regulation” of the Ethereum blockchain.
In an announcement on social media platform X, Lubin said Consensys had taken an important step to “gain access to Ether, and thus the Ethereum blockchain, in the U.S. We are suing the SEC and fighting back against their overzealous regulation.
Today, Consensys took an important step towards preserving access to ether and by extension the Ethereum blockchain in the U.S. We are suing the SEC and fighting back against its overzealous regulatory overreach. You can find more of my thoughts here: https://t.co/VmvOsrCxjw… https://t.co/5IubZo69FW
— Joseph Lubin (@ethereumJoseph) April 25, 2024
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