The United States Securities and Exchange Commission (SEC) has postponed a decision on yet another Ethereum (ETH) spot ETF proposal. This time it was the proposal from Invesco Galaxy, one of nine that are under analysis by the agency.
With the postponement, the SEC has until July 5th to make its final decision on Invesco’s request. This was the third proposal that the SEC postponed the decision in two weeks. As CriptoFácil reported, the agency postponed its decision on the requests from Franklin Templeton and Grayscale.
Decision was due in July
The SEC announced the postponement in a document published on Monday (6), stating that it would take another 60 days to decide whether to approve or reject Invesco’s request. Normally, the requested period of postponement is 45 days.
In the case of Invesco, this is the third time that the SEC has postponed its decision. The agency postponed the response in December 2023 and made a second extension in February 2024.
The manager submitted its Ethereum ETF application to the SEC on October 20, 2023, even before the approval of Bitcoin (BTC) ETFs.
According to SEC regulations, the total deadline for postponements can be up to 240 days from publication, or about six months. Typically, the SEC makes 45-day delays, but Invesco’s request was given a two-month deadline.
However, despite the deadline being set for July 5th, the SEC may make its decision earlier. In this case, the agency can approve the request or reject it.
“The Commission finds it appropriate to designate a longer period to issue an order approving or disapproving the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised therein,” the SEC said in the filing.
Postponement history
The approval of ETFs, especially those for cryptocurrencies, does not usually come without delays. In the past, the SEC has also delayed a decision on Ethereum ETF applications from BlackRock, Fidelity, VanEck, and Grayscale.
In this sense, VanEck suffered the first postponement and, therefore, will have the first new response. The SEC must provide its final response to the manager by May 23, 2024. However, the market is not optimistic about the approval of the Ethereum ETF.
According to Eric Balchunas, ETF analyst at Bloomberg, the chances of the SEC approving such a product in May are 25%. These chances reached 40%, but fell as the SEC began classifying ETH as a security, which could delay the decision on the ETF.
Source: https://www.criptofacil.com/sec-adia-decisao-sobre-etf-de-ethereum-da-invesco/
