The U.S. Securities and Exchange Commission (SEC) has delayed its decision on a proposed spot Ether (ETH) exchange-traded fund (ETF) by Invesco and Galaxy Digital, according to recent filings .
This ETF aims to offer professional investors a direct avenue to invest in spot Ether, contrasting with the current situation where Ether futures on the CME serve as one of the few regulated paths for U.S. investors and funds to speculate on the Ethereum network‘s expansion.
A recent document reveals that the US Securities and Exchange Commission (SEC) has solicited public input on various aspects of spot Ethereum ETFs, particularly relating to the application submitted by Invesco Galaxy. Concurrently, the SEC has extended the timeline for this application’s decision by an additional 35 days to allow ample opportunity for the evaluation of public responses:
“The Commission requests that interested persons provide written submissions of their views, data, and arguments with respect to the issues identified above, as well as any other concerns they may have with the proposal.”
James Seyffart, an analyst at Bloomberg Intelligence, explained that the delay in the decision by the SEC was entirely anticipated and that further postponements are expected in the upcoming months. He emphasized that the critical date for spot Ethereum ETFs is May 23, marking the final deadline for the application by VanEck.
Seyffart further noted that the SEC’s approach to managing ETF applications in traditional finance, characterized by postponing decisions until the final deadline, is a standard practice.
He stated :
In January, the SEC postponed its decision on key applications related to Ethereum, including Grayscale Investments’ bid to transform its Ethereum trust product (ETHE) into an exchange-traded fund (ETF), as well as BlackRock’s application for an Ether ETF.
This move has led financial behemoths to predict a potential surge in Ether’s value, with expectations of up to a 70% increase in the coming months, especially as ETF approvals are anticipated in May.
“Given the expected approval date on May 23, we foresee ETH prices either mirroring or surpassing the performance of bitcoin (BTC) during the analogous timeframe,” stated Standard Chartered Bank in a January note, highlighting the optimistic outlook for Ethereum ahead of the pivotal decision date.
Ethereum leads major cryptocurrencies with a 1.5% increase in the last 24 hours.