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SEC Delays Decision on Invesco Galaxy’s Ethereum ETF Until February 2024

Hongji Feng
Last updated: | 1 min read
Ethereum ETF
Source: DALL·E

The U.S. Securities and Exchange Commission (SEC) has postponed its decision on Invesco Galaxy’s spot Ethereum exchange-traded fund (ETF) application, with a new decision to be made in 2024.

According to the SEC’s latest filing, the decision, initially expected by December 23, 2023, has been delayed to allow the Commission more time to review the proposal. The new deadline is Feb. 6, 2024.

“The Commission finds it appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised therein,” wrote the SEC in the filing.

The SEC has designated the new deadline “as the date by which the Commission shall either approve or disapprove, or institute proceedings to determine whether to disapprove, the proposed rule change.”

Trend of Ethereum ETF Applications

In September, Invesco and Galaxy Digital filed the form for the application of the spot Ethereum ETF. According to the S-1 registration statement, their ETF aims to “reflect the performance of the spot price of ether” by holding units of the crypto with a separate custodian.

As of today, major financial institutions including BlackRock, ARK, Fidelity, VanEck and Hashdex have filed spot Ethereum ETF applications with the SEC, all pending final decisions.

SEC Holds Meetings with Major Bitcoin ETF Issuers

Recent filings indicated that the SEC has been meeting with major Bitcoin ETF issuers and including BlackRock, Grayscale, Franklin, and Fidelity. According to Bloomberg Intelligence ETF analyst James Seyffart, the meetings have brought renewed momentum to the discussion of spot Bitcoin ETF approvals.

With the SEC set to make a decision on BlackRock’s application by mid-January, these discussions are critical. The repeated engagements and strategic amendments to applications, such as BlackRock’s inclusion of cash purchases for new fund shares, reflect a concerted effort to align with regulatory expectations.

Seyffart suggests that the SEC might consider simultaneous approvals for multiple applications to ensure a level playing field among competitors. As the SEC’s review process continues, the crypto community awaits what could be a landmark decision in the history of cryptocurrencies.