The US Securities and Exchange Commission has moved delaying its decision on Invesco Galaxy’s proposed Ethereum spot ETF, according to a recent filing.
The US Securities and Exchange Commission has moved delaying its decision on Invesco Galaxy’s proposed Ethereum spot ETF, according to a recent filing.
The regulator has extended the deadline for approval or disapproval of the ETF proposal in question by an additional 60 days.
Last month, the SEC also criticized its decision on one-time Ethereum ETF proposals from Franklin Templeton and Grayscale.
According to a recent Reuters report, citing industry experts, the SEC is expected to reject the Ethereum ETFs proposed by VanEck and ARK later this month.
Industry experts have predicted that the SEC was going to deny these ETFs due to lack of commitment, which was not the case at the time of the Bitcoin ETF approval.
According to industry analysts, Ethereum spot ETFs are likely to be rejected for a mechanical reason. Bitwise’s Matt Hougan predicted that the SEC would say it wanted to see more data.
It is worth noting that the SEC is currently in the middle of a legal battle with Consensys, a key backer of Ethereum. In April, Consensys took the regulator to court over its decision to “wrongly” label the leading altcoin as a security.
However, BlackRock CEO Larry Fink said it was still possible to launch an Ethereum spot ETF even if the underlying cryptocurrency were classified as an unregistered security.
It took more than a decade for the SEC to finally approve spot Bitcoin ETFs earlier this year. The ETFs ended up being a big success, but it seems that the regulator is not ready to approve Ethereum ETFs.
