SEC delays Invesco Galaxy spot ETH ETF, but May decisions are still expected

The U.S. Securities and Exchange Commission (SEC) extended the determination play for Invesco and Galaxy’s spot Ethereum ETF connected Feb. 6.

The agency’s announcement specifically concerns a projected regularisation alteration from Cboe BZX that would let it to database and commercialized shares of the fund.

The SEC said that the projected regularisation alteration was published for remark successful the Federal Register connected Nov. 8, 2023. The bureau past designated a longer play for support connected Dec. 13, 2023, extending the play during which it could approve, disapprove, oregon institute proceedings astir support oregon disapproval.

The agency’s latest filing indicates that it has chosen the past option, thereby instituting proceedings for astir support oregon disapproval. The proceedings petition that commenters code fraud prevention, marketplace manipulation, and capitalist protections. These issues are astatine play for each different pending Ethereum ETF proposals and were besides cardinal to the support of spot Bitcoin ETFs successful January.

The SEC did not supply nonstop deadlines today. It said that comments should beryllium submitted wrong 21 days of work successful the Federal Register, and that rebuttal comments should beryllium submitted wrong 35 days of work successful the same.

SEC expected to determine connected ETH ETFs by May

The hold does not impact broader support timelines for ETH ETFs. Bloomberg ETF expert James Seyffart acknowledged the delay, writing:

“[The] SEC conscionable delayed [Invesco and Galaxy’s] Ethereum ETF. [This was] 100% expected and much delays volition proceed to hap successful coming months. The lone day that matters for spot Ethereum ETFs astatine this clip is May 23rd. Which is VanEck’s last deadline date.”

It is apt that the SEC volition determine connected aggregate akin proposals astatine the aforesaid time, including those that person aboriginal deadlines than VanEck’s proposal.

The SEC has delayed assorted different spot Ethereum ETFs successful past weeks. The bureau extended the determination play connected applications from Fidelity connected Jan. 18, BlackRock connected Jan. 24, and Grayscale connected Jan. 25. Once again, those delays bash not impact the broader May determination deadline described by Seyffart.

It is unclear whether the SEC volition take to o.k. a spot Ethereum ETF. One Polymarket prediction marketplace currently suggests 43% likelihood of support by May. Seyffart has suggested a 60% accidental of support by May, portion 1 JP Morgan member has suggested a 50% accidental of approval. A TD Cowen probe group believes that a spot Ethereum ETF volition not beryllium approved successful May.

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