The U.S. Securities and Exchange Commission (SEC) has decided to extend its evaluation period for the Invesco Galaxy spot Ethereum exchange-traded fund (ETF) application. Originally anticipated by December 23, 2023, the SEC has pushed the decision deadline to February 6, 2024, providing additional time for thorough review.
In their filing, the SEC cited the need for an extended period to carefully assess the proposed rule change and address related concerns. The new deadline has been designated for the SEC to either approve, disapprove, or initiate proceedings to determine disapproval of the proposed rule change.
In September, Invesco and Galaxy Digital jointly submitted the application for the spot Ethereum ETF. The ETF aims to mirror the performance of the spot price of ether by holding units of the cryptocurrency under a separate custodian.
This delay in the decision aligns with a broader trend of Ethereum ETF applications. Notable financial institutions like BlackRock, ARK, Fidelity, VanEck, and Hashdex have submitted spot Ethereum ETF applications, all awaiting final decisions from the SEC.
Recent developments indicate that the SEC has engaged in discussions with major Bitcoin ETF issuers, including BlackRock, Grayscale, Franklin, and Fidelity. These meetings, coupled with strategic adjustments to applications, signal renewed momentum in the consideration of spot Bitcoin ETF approvals.
As the SEC approaches a mid-January decision deadline for BlackRock’s application, there is speculation about potential simultaneous approvals for multiple applications to ensure fairness among competitors. The ongoing review process by the SEC raises anticipation within the crypto community for what could be a pivotal decision in the history of cryptocurrencies.
