Big news for Ethereum investors! The U.S. Securities and Exchange Commission (SEC) has thrown a curveball by delaying a decision on the highly anticipated Invesco Galaxy Ethereum ETF. This move has analysts and investors scrambling to understand what it means for the future of Ethereum ETFs in the US. Will July bring the green light, or is this just the first hurdle in a long race?
Read on to find out!
Extension of Review Period: Details of The Filing
In a recent court filing dated May 6, 2024, the SEC revealed they need more time to think over the proposal for the Invesco Galaxy Ethereum ETF, which was first put forward by the Cboe BZX Exchange.
The announcement has extended the review period for deciding upon the Ethereum ETFs up until the 5th of July, 2024. The SEC reasons this extension as the requirement for more time to consider the implications of approving the Ethereum ETF in the market.
“The Commission finds that it is 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 proposed rule change and the issues raised therein.”
The Journey So Far
The story of Ethereum ETFs began on October 20, 2023, when Cboe BZX Exchange made the first move. By November 8th, 2023, the proposal was out there for everyone to have their say.
Following the rules, the SEC stretched out its review process in February 2024, and now, we’re waiting until July for the final call.
But don’t bank on a clear decision in July. The SEC might play tough, with Galaxy, BlackRock, or others possibly heading to court if things don’t go their way, setting the stage for a drawn-out legal battle.
What Next?
While the SEC’s extension might look like thorough investigation, some experts think otherwise. They reckon the hold-up comes from SEC Chair Gensler’s hardline stance on crypto, mixed with an ongoing look into Ethereum, known as ‘ETHGate.’
Michael Saylor, CEO of MicroStrategy and a big Bitcoin supporter, recently said the SEC will probably say no to Spot Ethereum ETFs.
On July 5, 2024, all eyes will be on the aftermath of this big decision. Will it set off a crypto frenzy or shake up the market? We’ll have to wait and see.
Also Check Out : Hong Kong’s New Spot Bitcoin and Ethereum ETFs: 1st Week Analysis
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