The United States SEC recently decided to extend its evaluation period for the proposed Spot Ether ETFs presented by Invesco and Galaxy Digital.
The regulatory body issued a notice on Feb. 6, announcing its initiation of proceedings to assess a rule change proposal by the Cboe BZX Exchange, aiming to list and trade shares of the Invesco Galaxy Ethereum ETF.
This move means that the public now has an opportunity to comment on the proposed investment vehicle, pushing the decision deadline an additional 35 days from the date of publication in the Federal Register. However, the SEC retains the authority to delay the final decision on the Invesco Galaxy spot Ethereum ETF for up to 240 days. Invesco initially filed with the commission in October 2023, and the publication in the Federal Register followed in November, granting the SEC until July 2024 to make a definitive approval or denial.
Spot Bitcoin ETFs and Spot Ether ETFs
The development of spot Bitcoin ETFs has been noteworthy, with various asset managers facilitating trading on U.S. exchanges since the SEC’s landmark approval on Jan. 10. As of now, the SEC continues to evaluate applications for spot ETH ETFs from prominent firms such as BlackRock, Hashdex, ARK 21Shares, VanEck, and Fidelity. The approval of spot BTC ETFs was significant, marked by the SEC simultaneously greenlighting 11 applications.
Despite the anticipation surrounding spot ETH investment vehicles, the SEC has been relatively reserved in its public comments on the matter. While some experts speculate that the commission may adopt a similar approach to spot Ether ETFs as it did with Bitcoin, approving multiple applications simultaneously, the SEC’s stance remains unclear.
Among the firms seeking approval for spot Ethereum ETFs, VanEck is poised to be one of the first to receive a decision, with an SEC deadline set for May 23. This impending decision will likely influence the market and set the tone for the approval process of other Ethereum-based investment vehicles.
Investors, analysts, and industry enthusiasts are closely monitoring the SEC’s actions, as the approval of a Spot Ether ETFs could have significant implications for the broader cryptocurrency market. The delay in the decision on the Invesco Galaxy Ethereum ETF adds an element of uncertainty, creating a dynamic landscape for stakeholders.