Learn about the latest development regarding the United States Securities and Exchange Commission's (SEC) delay in deciding on Invesco Galaxy's application for a spot Ether exchange-traded fund (ETF). With the next deadline set to July 5, discover the implications for the cryptocurrency market and investor sentiment.

The United States Securities and Exchange Commission (SEC) has announced a delay in its decision regarding Invesco Galaxy's application for a spot Ether exchange-traded fund (ETF). With the new deadline set for July 5, the SEC aims to allocate sufficient time to consider the proposed rule change and related issues.


The SEC's decision to extend the review period for Invesco Galaxy's Ether ETF application follows a series of delays affecting all eight prospective Ether ETF issuers, including prominent names such as BlackRock, Fidelity, and Franklin Templeton. Analysts had anticipated these delays, aligning with expectations of regulatory caution in the cryptocurrency space.


Notably, May 23 marks the final deadline for VanEck's Ether ETF application, considered by many as the "only deadline that matters." However, skepticism remains regarding the SEC's approval of ETFs by this date, with analysts downgrading the likelihood of approval amid regulatory uncertainties.


Bloomberg ETF analyst Eric Balchunas, in particular, expressed reservations about the prospects of SEC approval, citing prolonged periods of regulatory silence and growing political scrutiny faced by SEC Chair Gary Gensler. These factors have contributed to a shift in sentiment among ETF analysts, with expectations leaning towards the denial of all pending Ether ETF applications.


Despite these challenges, Ethereum advocate Anthony Sassano remains optimistic about the possibility of SEC approval by VanEck's final deadline. Sassano highlights the SEC's prior approval of Ether futures ETF products and recent engagements with crypto industry stakeholders as potential catalysts for approval.


As the cryptocurrency market awaits the SEC's decision, investors and industry observers closely monitor developments, anticipating the regulatory landscape's impact on Ether ETFs and broader market sentiment. The delay in the decision on Invesco Galaxy's application underscores the complexities and uncertainties surrounding cryptocurrency regulation in the United States.


(TOM MITCHELHILL, COINTELEGRAPH, 2024)