The Invesco Galaxy Ethereum Spot ETF is intended to reflect the performance of the spot price of ETH by storing ETH units in a separate vault. According to the document, Invesco is the sponsor and Galaxy Digital is the executing agent responsible for selling ETH to cover the trust's expenses. However, according to the document released Monday, the Commission decided to defer a decision on the company's proposal.
The SEC said it needed additional time to analyze the issues involved and the proposed rule change, and emphasized the need for additional time to fully evaluate the spot #ETF offering. Therefore, the SEC granted 60 days to approve or disapprove the proposal.
The statement reads as follows:
The Commission believes that a longer period of time to issue an order approving or disapproving a proposed rule change is appropriate to allow sufficient time to consider the proposed rule change and the issues it raises.
Given that the SEC has 240 days from the publication of the proposed rule change to make a final decision to approve or disapprove the application, it is expected to make a final decision on Invesco Galaxy's #CryptoWatchMay2024 Spot ETF by July 5, 2024.
Invesco Galaxy is the latest asset manager whose spot ETF proposal has been delayed by the institution. Other well-known companies such as #BlackRock have suffered the same fate.
BlackRock's spot Ethereum ETF offering was delayed in March, marking the second time the SEC has deferred a company's offering; this repeated deferral by the SEC continues to cast a shadow over exchange-traded products in the crypto community.
Unlike #bitcoin , the Ethereum Spot ETF has always been viewed negatively by leading figures in the cryptocurrency industry. Last month, Justin Sun, founder of Tron, expressed disbelief that the tool would be approved by May 31. 'My honest opinion [about the NFA] is that the Ethereum ETF will not be approved in May,' he said.
He believes the crypto industry has already reached that stage, but argues that the crypto industry still needs to prepare for a long learning curve for authorities and regulators to understand cryptocurrencies.
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