As a long-time crypto investor, I’ve grown accustomed to the rollercoaster ride that comes with investing in this space. However, the ongoing regulatory uncertainty surrounding Ethereum ETFs has added an extra layer of anxiety to my portfolio.
As a researcher following the developments of Ethereum Exchange-Traded Funds (ETFs), I’ve observed that the Securities and Exchange Commission (SEC) has once again delayed its decision on approving or denying the Invesco Galaxy Ethereum ETF application. This postponement adds to the uncertainty surrounding Ethereum ETFs, as the regulatory body continues to extend its deadlines.
More Uncertainty For Invesco ETH ETFs
On Monday, the SEC filed another postponement of its ruling on Invesco’s proposed Ethereum ETF, which was initially applied for in February. This latest delay highlights the formidable regulatory challenges that the cryptocurrency sector continues to encounter.
The SEC’s repeated postponements of decision-making on various spot Ethereum ETF proposals, including those submitted by BlackRock, Van Eck, Franklin Templeton, and Grayscale, signify a larger pattern rather than isolated incidents.
The filing read,
The Commission decides to allow more time for issuing an order regarding the proposed rule change, enabling them to thoroughly evaluate the proposal and address any related concerns.
Proposed Rule Change Pending Decision
The regulatory body’s approach towards multiple proposed Ethereum ETFs has been marred by ambiguity. For instance, the application for the Invesco Galaxy spot Ethereum ETF, originally scheduled for a decision on December 13, 2023, encountered an unexpected development. On November 8, the Cboe BZX Exchange announced a proposed rule modification enabling them to list and trade shares of the Invesco Galaxy Ethereum ETF. This modification, published in the Federal Register, necessitated a response from the SEC within 45 days.
SEC’s Delay Games
On December 13, the SEC announced that it required additional time to make a decision regarding the proposed rule change, pushing back the decision date from December 23 to February 6, 2024.
When February 6th rolled around, the SEC further pushed back its decision, claiming,
It would be suitable to initiate the process now, given the complex legal and policy concerns that arise from the suggested rule modification.
The SEC extended its decision-making timeline for the Invesco Galaxy Ethereum ETF application, as stated in their May 6 filing. The new deadline falls on July 5.
Analysts Losing Hope For ETH ETF
The approaching May 23 decision date by the SEC for Van Eck’s spot ETH ETF application is significant, as per ETF analyst James Seyffart’s assessment. He previously held a hopeful outlook towards the prospective Ether ETF applications. However, based on current information available up to March 20, he anticipates that all such applications may be rejected by the SEC come May 23.
As an ETF analyst, I’ve been closely following the developments surrounding the SEC’s decision on Ethereum (ETH) ETFs. Previously, I estimated the odds of approval to be at 50%. However, recent events have led me to revise this estimate down to 35%.
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2024-05-07 17:07