{"id":13688,"date":"2024-05-07T08:53:02","date_gmt":"2024-05-07T12:53:02","guid":{"rendered":"https:\/\/sikaoer.com\/spot-ether-etf-saga-continues-sec-kicks-the-can-down-the-road\/"},"modified":"2024-05-07T08:53:02","modified_gmt":"2024-05-07T12:53:02","slug":"spot-ether-etf-saga-continues-sec-kicks-the-can-down-the-road","status":"publish","type":"post","link":"https:\/\/sikaoer.com\/spot-ether-etf-saga-continues-sec-kicks-the-can-down-the-road\/","title":{"rendered":"Spot Ether ETF Saga Continues: SEC Kicks the Can Down the Road"},"content":{"rendered":"
\n<\/p>\n
The United States Securities and Exchange Commission (SEC) has once again delayed its decision on Invesco Galaxy\u2019s application for a spot Ether exchange-traded fund (ETF).<\/p>\n
In a filing on May 6, the SEC announced that it would require an additional 60 days to decide whether to approve or disapprove the proposed ETF, setting the next deadline for July 5, 2024.<\/p>\n
This latest delay marks the third time the SEC has postponed its decision on the Invesco Galaxy spot Ether ETF. The agency first delayed making a decision in December 2023 and made a second extension in February 2024.<\/p>\n
The proposal for the ETF was initially filed with the SEC on October 20, 2023, and was published in the Federal Register on November 8, 2023.<\/p>\n
In its filing, the SEC stated that it finds it appropriate to designate a longer period to issue an order approving or disapproving the proposed rule change, allowing sufficient time to consider the proposed change and the issues raised therein.<\/p>\n
The agency has a total of 240 days from the publication date to make extensions before reaching a final decision.<\/p>\n
The SEC\u2019s delay in deciding on the Invesco Galaxy spot Ether ETF is not an isolated incident.<\/p>\n
In recent months, the agency has delayed decisions on applications from all eight prospective Ether ETF issuers, including prominent financial institutions such as BlackRock, Fidelity, Franklin Templeton, Hashdex, and Ark 21Shares. This series of delays is in line with analyst expectations.<\/p>\n
Among the pending applications, VanEck\u2019s Ether ETF has the earliest final deadline, set for May 23, 2024.<\/p>\n
Bloomberg ETF analyst James Seyffart considers this deadline the \u201conly one that matters,\u201d as it will likely set the precedent for the SEC\u2019s decisions on the other applications.<\/p>\n
However, optimism surrounding the potential approval of a spot Ether ETF has waned in recent months.<\/p>\n
In March, senior Bloomberg ETF analyst Eric Balchunas downgraded his odds of SEC approval from 50% to 35%, citing a prolonged period of \u201cradio silence\u201d from the SEC to prospective fund issuers and increasing political pushback against SEC Chair Gary Gensler as reasons for the decreased likelihood of approval.<\/p>\n
Seyffart, who was previously \u201ccautiously optimistic\u201d about the pending Ether ETF applications, has also changed his stance. As of March 20, he expects that all applications for an Ether ETF will \u201cultimately be denied\u201d by the SEC on May 23.<\/p>\n
Despite the consensus among ETF analysts, some Ethereum advocates remain hopeful that the SEC could still approve the funds by VanEck\u2019s final deadline.<\/p>\n
Anthony Sassano, a prominent Ethereum advocate, maintains his conviction, pointing to the agency\u2019s approval of Ether futures ETF products in 2024 and a recent meeting between the regulator, crypto asset management firm Grayscale, and crypto exchange Coinbase as reasons why the SEC could still grant approval.<\/p>\n
The ongoing delays in the SEC\u2019s decision-making process have left the crypto community and financial institutions eagerly awaiting the outcome of the spot Ether ETF applications.<\/p>\n
The approval of such a product could potentially lead to increased mainstream adoption and institutional investment in Ethereum, the second-largest cryptocurrency by market capitalization.<\/p>\n
As the July 5 deadline for the Invesco Galaxy spot Ether ETF approaches, all eyes will be on the SEC\u2019s decision regarding VanEck\u2019s application on May 23.<\/p>\n