Pessimism surrounding the approval of Spot ethereum ETFs will increase as the United States Securities and Exchange Commission (SEC) has done so. opted delaying its decision on the approval process for the Invesco Galaxy eth Spot ETF, fueling uncertainty in the crypto market.
SEC rejects Invesco's ethereum Spot ETF
In October last year, Invesco Galaxy archived a proposed rule change for listing and trading shares of its ethereum spot ETF, Commodity-Based Trust Shares, with the SEC under the Securities Exchange Act of 1934 and related Rule 19b-4, which was published in the Federal Register in November.
Invesco Galaxy ethereum Spot ETF aims to mirror the performance of the Ether spot price, holding units of eth with a different custodian. The document indicated that Invesco is the sponsor and Galaxy Digital is the executing agent, which is responsible for selling eth to cover the costs of the Trust. However, according to a statement on Monday, the Commission decided to postpone its decision on the company's proposal.
The SEC stated that more time is needed to analyze the related concerns and the proposed rule change, emphasizing the need for more time to fully evaluate the spot ETF proposal. Thus, the regulatory watchdog has given an additional 60 days to approve or disapprove the proposal.
The presentation said:
The Commission believes 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.
Given that the SEC has 240 total days from the publication date to make extensions before reaching a final decision to approve or disapprove the application, the agency is expected to issue a final decision on the Invesco Galaxy ethereum Spot ETF before July 5, 2024.
Invesco Galaxy is the latest asset management firm to see the agency delay its spot ETF proposal. Other prominent companies such as Blackrock have also suffered the same fate over time.
The Blackrock Spot ethereum ETF proposal was delayed in March, marking the second time the Commission postponed the company's proposal. This repeated delay by the SEC has so far cast a dark shadow over exchange products within the crypto community.
eth Spot ETFs See Pessimism From Major crypto Figures
Over time, ethereum Spot ETFs have seen consistent negative sentiment from major figures in the crypto space, unlike bitcoin, which saw unwavering optimism in these figures. Last month, Tron founder Justin Sun x.com/justinsuntron/status/1784609758076703224″ target=”_blank” rel=”noopener nofollow”>voiced their disbelief that the products will be approved before the May 31 deadline. “My honest opinion (NFA) is that an ethereum ETF will not be approved in May,” he said.
Sun says the cryptocurrency industry still needs to prepare for a lengthy educational process to help authorities and regulators understand cryptocurrencies, although he believes the industry has already reached this stage.
Currently, the ethereum-etf-approved-by-may-31?tid=1715070812359″ target=”_blank” rel=”noopener nofollow”>probability The acceptance rate for eth spot ETFs is now just 12%, which is a significant decrease from the 76% odds recorded in January following the approval of bitcoin spot ETFs.
Featured image from iStock, chart from Tradingview.com
