Pessimism surrounding the approval of Spot Ethereum ETFs is expected to increase with the US Securities and Exchange Commission (SEC) decision. to choose to delay its decision on the approval process for Invesco Galaxy's ETH Spot ETF, adding to the uncertainty in the cryptocurrency market.
SEC pushes Invesco's ETF back
In October last year, Invesco Galaxy foot A proposed rule change for listing and trading shares of its spot ETF, commodity-based trust shares, with the Securities and Exchange Commission under the Securities Exchange Act of 1934 and Rule 19b-4 thereunder, which was published in the Federal Register in November.
Invesco Galaxy Ethereum Spot ETF It aims to mirror the performance of the spot price of Ethereum, by holding Ethereum units with a different custodian. The document indicated that Invesco is the sponsor and Galaxy Digital is the implementation agent responsible for selling ETH to cover the costs of the fund. However, according to Monday's filing, the Commission decided to postpone its decision on the company's proposal.
The SEC announced that additional time is needed to analyze the relevant concerns and proposed rule changes, stressing the need for more time to fully evaluate the immediate ETF proposal. Therefore, the regulatory watchdog gave an additional 60 days to approve or reject the proposal.
The file reads:
The Commission believes it is appropriate to establish a longer period for issuing an order approving or disapproving a proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised therein.
Since the SEC generally has 240 days from the publication date to make extensions before reaching a final decision to approve or deny an application, the agency is expected to issue a final decision on Invesco Galaxy's Ethereum Spot ETF by July 5, 2024.
Invesco Galaxy It is the latest asset management firm to see its Spot ETF proposal delayed by the agency. Other prominent companies like Blackrock also faced the same fate over time.
Blackrock's proposed Spot Ethereum ETF was postponed in March, the second time the commission has postponed the company's proposal. These repeated delays from the SEC have so far cast a dark shadow over exchange products within the cryptocurrency community.
ETH Spot ETFs See Pessimism From Top Cryptocurrency Figures
over time, Ethereum Spot ETFs have seen persistent negative sentiment from major figures in the cryptocurrency space, unlike Bitcoin, which has seen unwavering optimism from these numbers. Last month, Tron founder Justin Sun I expressed Not being able to get the products approved by the May 31 deadline. “My (NFA) honest opinion is that the ETF will not be approved in May,” he said.
Sun claims that the cryptocurrency industry still needs to prepare for a lengthy educational process in order to help authorities and regulators understand cryptocurrency, although he believes that the industry has already reached this stage.
currently, Likely The acceptance rate for ETH Spot ETFs is now just 12%, which is a significant decline from the 76% odds recorded in January after Bitcoin Spot ETFs were approved.
Featured image from iStock, chart from Tradingview.com