SEC Postpones Decision on Galaxy Invesco's Ether ETF Amid Growing Doubts
Summary:
The US SEC has delayed its decision on the Ether ETF application submitted by Galaxy Invesco, citing the need for additional review time. This move follows a series of postponements on various Ether ETF applications from companies like BlackRock, Fidelity, and others. There is a growing consensus among analysts that the SEC might not approve the applications, despite Ethereum advocate Anthony Sassano's confidence the regulator could green-light the funds by VanEck's final deadline.
A decision on the Ether (ETH) exchange-traded fund (ETF) application from Galaxy Invesco has been postponed by the United States Securities and Exchange Commission (SEC). The SEC's filing on May 6 indicated that they have allocated an additional 60 days to evaluate Galaxy's ETF, pushing the following deadline to July 5. The SEC stated that an extension was appropriate to permit ample time to review the proposal and all concerns connected with it.
Over recent months, the regulator has consistently postponed decisions on eight potential Ether ETF issuers, such as BlackRock, Fidelity, Franklin Templeton, Hashdex, and Ark 21Shares, a move predicted by industry analysts. VanEck's Ether ETF application deadline— the only significant one according to Bloomberg ETF analyst James Seyffart— is May 23.
In March, Eric Balchunas, Senior Bloomberg ETF analyst, lowered his estimate for the SEC's approval of the ETFs from 50% to 35%, doubting the regulator would approve VanEck's application by the ultimate deadline. His outlook was shaped by the SEC's extended silence and growing political resistance against SEC Chair Gary Gensler.
Seyffart's initially "cautiously optimistic" view on the pending Ether ETF applications has since shifted. He predicted as of March 20 that the SEC would ultimately decline all Ether ETF applications by May 23.
Even with this consensus among ETF analysts, Ethereum advocate Anthony Sassano remains confident that the SEC might approve the funds by VanEck's final deadline. Sassano referenced the SEC's approval of Ether futures ETF products last year and a March 9 meeting with Grayscale, a crypto asset management firm, and Coinbase, a crypto exchange, as indicators that the applications could still be green-lit.
Published At
5/7/2024 3:15:16 AM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.