The Securities and Exchange Commission (SEC) has once again postponed its decision regarding Invesco Galaxy’s application for a spot Ethereum ETF, setting a new deadline for July 5. This delay is part of an ongoing pattern where the SEC has extended its review period for several similar applications.
On May 6, the SEC announced it would need an additional 60 days to review the Invesco Galaxy Ethereum ETF proposal. This decision allows the commission more time to consider the rule change and address the complexities involved, ensuring a thorough evaluation process.
This postponement is not isolated; the SEC has similarly delayed decisions on Ethereum ETF applications from other major financial entities, including BlackRock, Fidelity, and Franklin Templeton. These delays seem to align with the cautious approach the SEC has been maintaining towards cryptocurrency-related products.
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A significant upcoming deadline is May 23, set for VanEck’s Ethereum ETF application. Notably, this date is considered critical within the financial community, with implications that may influence the SEC’s stance on future cryptocurrency ETFs. Despite the postponements, some industry analysts, like Bloomberg’s James Seyffart and Eric Balchunas, have expressed skepticism about the approvals, citing regulatory hesitations and increasing political pressure on SEC Chair Gary Gensler.
Conversely, Ethereum advocates like Anthony Sassano hold a more hopeful view, suggesting that prior approvals of related products and ongoing discussions between regulators and major crypto firms could sway the SEC’s final decisions positively.
As the July deadline approaches, stakeholders within the cryptocurrency and investment sectors are keenly watching for any signs that might indicate the SEC’s readiness to embrace these new financial products.
