The United States Securities and Exchange Commission (SEC) has announced a delay in its decision-making process regarding the approval or disapproval of a spot Ether exchange-traded fund (ETF) proposed by Invesco and Galaxy Digital.
In a notice dated December 13, the SEC revealed its intention to extend the evaluation period for a proposed rule change that would permit the Cboe BZX Exchange to list and trade shares of the Invesco Galaxy Ethereum ETF.
This proposed ETF represents just one of several cryptocurrency investment vehicles currently under the SEC’s consideration. Up to this point, the SEC has never granted approval for an ETF with direct exposure to Bitcoin or other cryptocurrencies.
The initial deadline for the decision on this proposed rule change was set for December 23, 2023, but the SEC has now designated February 6, 2024, as the new deadline for either approval, disapproval, or the initiation of proceedings to determine whether to disapprove the proposed rule change.
Invesco and Galaxy Digital submitted their application for a spot ETH ETF in September, following the reactivation of their application for a spot Bitcoin ETF in June.
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Some experts have speculated that if the SEC eventually approves a spot crypto ETF, whether it involves Bitcoin or Ether, it may lead to simultaneous approvals of similar funds from various other financial firms.
As of the latest available information, multiple firms have submitted applications for spot crypto ETFs, including BlackRock, Hashdex, ARK 21Shares, VanEck, and Fidelity.
The SEC has been actively engaged with these asset managers, as evidenced by recent memos released over the past 30 days, which indicate that representatives from these firms have met with SEC officials to discuss their ETF offerings.
In summary, the SEC’s decision to delay the approval or disapproval of the Invesco Galaxy Ethereum ETF highlights the ongoing regulatory scrutiny and careful evaluation of cryptocurrency-based financial products in the United States.
The outcome of this decision could potentially set a significant precedent for the future of cryptocurrency ETFs in the country.
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