The US Securities and Exchange Commission (SEC) has delayed its decision on Invesco Galaxy's request for an ETF spot ether. The agency has given itself an additional 60 days to review the documents, with the next deadline set for July 5.
The SEC believes that it needs more time to consider the proposed changes and address the issues raised in the document. This is not the first time the agency has delayed its decision on Ethereum ETFs. In recent months, the SEC has delayed its decision on requests from all eight potential issuers of ETH ETFs, including BlackRock, Fidelity, Franklin Templeton, Hashdex, and Ark 21Shares.
No one is surprised by this move, as it is a standard procedure.
The key date is May 23, as it is the final deadline for the SEC to make a decision on VanEck's request. If the SEC decides to approve all bitcoin funds, it must say "yes" by May 23.
In March, Bloomberg's senior ETF analyst Eric Balchunas stated that the chances of creating ETFs for ether had decreased from 50% to 35%. Other experts share this view and point out that there is no news about talks between the SEC and issuers.
Could an ETH ETF not be created?
This would be surprising, as one of the applicants is BlackRock, a massive investment giant with a nearly 100% success rate in getting ETF approvals. There are already ETFs for futures ether and spot bitcoin. So, what argument would regulators need to reject applications for stock market funds? It seems that the only way to justify this would be to recognize ETH as a security.
