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The U.S. Securities and Exchange Commission has extended its deadline to approve the Invesco Galaxy Ethereum ETF. This move has stirred significant interest among investors and market analysts.
Extension of Review Period: Details of The Filing
As per the SEC’s latest Court filing dated May 6, 2024, the Commission has announced the need for additional time to review the Invesco Galaxy Ethereum ETF proposal, initially submitted by Cboe BZX Exchange.
The announcement has extended the review period for deciding upon the Ethereum ETFs up until the 5th of July, 2024. The SEC reasons this extension as the requirement for more time to consider the implications of approving the Ethereum ETF in the market.
The filing noted, “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.”
Ethereum ETFs’ journey started on October 20, 2023, when Cboe BZX Exchange filed the initial request with the SEC. Subsequently, on November 8th, 2023, the proposal was opened for public comment.
Following standard procedure, the SEC extended its review period in February 2024 and has again extended its decision until July of this year.
We cannot expect a sure-shot decision in July. The SEC is likely to deny, followed by Galaxy or BlackRock or any other applicant appealing their decision in Court, followed by a lengthy procedure.
In Conclusion
Although extending the review period for the Invesco Galaxy Ethereum ETF by the SEC would have represented the Commission’s best efforts to investigate, the reality is quite different. Market experts believe that the real reason behind the SEC delaying Spot Ethereum ETFs is because of Gensler’s aggressive stance towards crypto and the current ongoing investigation regarding Ethereum, or ‘ETHGate.’
Michael Saylor, the CEO of MicroStrategy and prominent Bitcoin maximalist, has said in his recent speech that SEC will likely deny Spot Ethereum ETFs.
On July 5, 2024 everyone will be looking at what the effects of this judgment will be.