Invesco Galaxy Ethereum ETF decision postponed by SEC, set for July

The United States Securities and Exchange Commission (SEC) has decided to postpone its ruling on Invesco Galaxy’s request for a spot Ether exchange-traded fund (ETF). According to a filing on May 6, the SEC has given itself an additional 60 days to make a decision on the Invesco Galaxy spot Ether (ETH) ETF, with the new deadline being July 5. The SEC stated that it needs more time to thoroughly review the proposed rule change and the associated concerns. This delay follows a pattern of the SEC postponing decisions on applications from all eight Ether ETF issuers, including BlackRock, Fidelity, Franklin Templeton, Hashdex, and Ark 21Shares. Analysts had predicted these delays. The final deadline for VanEck’s Ether ETF application is May 23, which is considered the most significant deadline. Bloomberg ETF analyst James Seyffart downgraded the odds of the SEC approving the ETFs from 50% to 35% in March, due to a lack of communication from the SEC and growing resistance from SEC Chair Gary Gensler. Seyffart now expects that all Ether ETF applications will be denied by the SEC on May 23. However, Ethereum advocate Anthony Sassano remains hopeful and believes that the SEC could still approve the applications, citing the agency’s approval of Ether futures ETF products in 2023 and a meeting between the SEC, Grayscale, and Coinbase as evidence.