The pessimism surrounding the approval of the Spot Ethereum ETF is likely to increase further following approval from the U.S. Securities and Exchange Commission (SEC). Selected Invesco Galaxy has delayed a decision on the approval process for its ETH Spot ETF, increasing uncertainty in the crypto market.
SEC pushes back against Invesco’s Ethereum Spot ETF
Last October, Invesco Galaxy It has been submitted Proposed rule changes to list and trade shares of the company’s Ethereum Spot ETF, a commodity-based trust, on the SEC under the Securities Exchange Act of 1934 and Rule 19b-4 thereunder were published in the Federal Register in November. It was announced.
invesco galaxy Ethereum Spot ETF By holding ETH units in a separate custodian, we aim to reflect the performance of the spot price of Ether. The document shows Invesco as the sponsor and Galaxy Digital as the executing agent responsible for selling ETH to cover the trust’s costs. But Monday’s filing said the European Commission decided to postpone a decision on the company’s proposal.
The SEC declared that additional time is needed to analyze related concerns and proposed rule changes, and emphasized that additional time is needed to fully evaluate the Spot ETF proposal. The regulatory watchdog has therefore given an additional 60 days to approve or disapprove the proposal.
The submitted document stated as follows:
The Commission should specify a longer period for issuing orders approving or disapproving proposed rule changes to allow sufficient time to consider the proposed rule changes and the issues raised therein. was deemed appropriate.
Given that the SEC has a total extension period of 240 days from the publication date to reach a final decision to approve or disapprove the application, the SEC has until July 5, 2024 to make a final decision to approve or disapprove the application. A final decision will be made on the matter.
invesco galaxy is the latest asset management company to see its spot ETF proposal delayed by government agencies. Other prominent companies like BlackRock also met the same fate over time.
BlackRock’s proposed Spot Ethereum ETF was postponed in March, marking the second time the committee has postponed the company’s proposal. To date, repeated delays from the SEC have cast a dark shadow on exchange products within the crypto community.
ETH Spot ETF, pessimism from cryptocurrency leaders
over time, Ethereum Unlike Bitcoin, which has seen unwavering optimism from these numbers, spot ETFs have consistently seen negative sentiment from top figures in the cryptocurrency industry.Last month, TRON founder Justin Sun expressed He doesn’t believe the product will be approved by the May 31st deadline. “My honest opinion (NFA) is that the Ethereum ETF will not be approved in May,” he said.
Sun believes that the cryptocurrency industry has already reached this stage, but the industry is still preparing for a long education process to help authorities and regulators understand cryptocurrencies. claims that it is necessary.
the current, possibility The acceptance rate for the ETH Spot ETF currently stands at just 12%, a significant drop from the 76% odds recorded in January following the approval of the Bitcoin Spot ETF.
Featured image from iStock, chart from Tradingview.com
