Groundhog Day: SEC Continues to Delay Spot Ethereum ETF Decisions
In a statement the regulator says more time is needed for a thorough review.
This pattern of delays affects multiple asset managers, hinting at extended uncertainty around Ethereum ETF approvals.
The US Securities and Exchange Commission (SEC) has again delayed a decision on a Spot Ethereum exchange-traded fund (ETF), this time on the application of Invesco Galaxy.
The move comes as no surprise, with many analysts forecasting delays even beyond 2024 – some commentators even go so far as to say there won’t be any Ether Spot ETF unless the SEC is forced by the courts to approve one.
Related: Crypto Market Analysis – Bitcoin on the Brink: Will It Defy the Odds?
The commission delayed Invesco’s application on Monday, now granting itself another 60 days – until 5 July – to make a decision. The regulator cited the need for additional time to review as the reason for the delay.
The Commission finds that it is appropriate to designate 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 therein.
The delay for Invesco Galaxy follows a slew of other asset managers’ applications being delayed in recent months and weeks, with BlackRock, Fidelity, VanEck and Ark 21Shares among them.
The Invesco deadline was the third out of a possible four delays, with VanEck’s deadline coming up 23 May, which will be when the SEC has to lay its cards on the table:
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
Back in April Jan van Eck, VanEck’s CEO himself gave the approval of these Spot ETFs little chance. He based this on a lack of communication by the SEC regarding the application, saying:
Pins are dropping as far as Ethereum is concerned.
Van Eck noted this was different from the situation with the now-approved Spot Bitcoin ETF applications, during which the SEC communicated throughout the process.
Speculations About Grayscale
Meanwhile, Grayscale withdrew its application for a Futures Ethereum ETF. Bloomberg ETF analyst James Seyffart could only speculate on the reasons for this withdrawal – contemplating it may be something that was said behind closed doors.
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While Seyffart still considers the approval of a Spot Ether ETF unlikely, he admitted that this could be one of the ‘very few reasons’ for the Grayscale withdrawal.
Seyffart thought the Grayscale application was something like a Trojan horse, similar to the BTC ETFs – when the approval of a Futures ETF eventually led to the approval of a Spot ETF.
hahaha
1. I *DO NOT* think that’s gonna happen (though odds aren’t zero). So I *DO* think it was something else
2. That said — honestly — that’s one of the very few reasons that i’d voluntarily withdraw this if I were Grayscale haha
— James Seyffart (@JSeyff) May 7, 2024
The post Groundhog Day: SEC Continues to Delay Spot Ethereum ETF Decisions appeared first on Crypto News Australia.
Filed under: Bitcoin - @ May 8, 2024 3:25 am