SEC Postpones Decision on Invesco and Galaxy Digital's Spot Ethereum ETF

The U.S. Securities and Exchange Commission (SEC) has deferred its decision on a joint application by Invesco and Galaxy Digital for a spot Ethereum exchange-traded fund (ETF). The final deadline for this case has been scheduled for July 2024. This postponement aligns with the SEC's previous delays in reviewing applications from other firms including Grayscale and BlackRock.

The decision to extend the review period was explained by the SEC as necessary to allow sufficient time to consider the application and address the issues raised. "The Commission finds it appropriate to designate a longer period within which to issue an order approving or disapproving the proposed rule change so that it has sufficient time to consider the application and the issues raised," stated the agency.

In February 2024, the SEC had previously delayed the application by Invesco and Galaxy to a later date. At that time, the regulator cited the need for further proceedings due to changes in current legislation related to the potential approval of spot Ethereum ETFs in the USA. Additionally, the SEC invited the public to comment on the situation.

Earlier, the SEC also moved the deadlines for applications from other issuers including Grayscale, Franklin Templeton, BlackRock, and VanEck. Jan van Eck, CEO of the investment company VanEck, expressed skepticism about the approval of spot Ethereum ETFs in May, noting that the Commission "does not respond to applications from potential applicants."

Analysts from the investment bank TD Cowen have forecasted a different timeline—Q4 2025. They believe the main obstacle to the launch of this new class of products is the unclear legal status of Ethereum, which complicates the regulatory approval process.