The U.S. Securities and Exchange Commission (SEC) has announced further delays in its decision regarding the Invesco Galaxy Ethereum Exchange Traded Fund (ETF).
The SEC has extended the deadline for approval or disapproval of the proposed Spot Ether ETF to July 5, 2024, according to a regulatory filing.
The SEC stated in its filing: “The Commission has specified a long period of time before issuing an order approving or disapproving a proposed rule change to allow sufficient time to consider the proposed rule change and the issues raised therein. This action provides the agency with additional time to thoroughly review the ETF proposal and address any concerns.
The delay is part of a pattern, as the SEC previously deferred a decision on the ETF and sought public comment in February. Similar enhancements have been applied to other spot Ethereum ETF proposals from major financial institutions such as Grayscale, Franklin Templeton, VanEck, and BlackRock in recent weeks.
Optimism about the approval of a Spot Ethereum ETF is waning as industry analysts' expectations change. Bloomberg ETF analyst Eric Balchunas noted that the chances of the SEC approving such a product by late May have fallen from about 70% to just 25%.
Earlier this year, the top U.S. watchdog said the NYSE Arca needed more time to consider proposed rule changes that would allow Invesco Galaxy Ethereum shares to be listed and traded as an exchange-traded fund (ETF). Ta.
Grayscale Ethereum Trust currently stands as the world's largest Ethereum investment product, with approximately $5 billion in assets under management. When launching a new crypto ETF, regulatory approval is typically sought from the exchange that lists the ETF's shares, rather than from the sponsor itself.
Similar to Grayscale's Bitcoin fund, the Grayscale Ethereum Trust is the world's largest Ethereum investment vehicle, accounting for 2.5% of all ETH in circulation.
The conversion to a spot ETF has been a long-term plan for the Grayscale Ethereum Trust since its inception in 2019. Currently, ETHE shares are trading at a discount compared to the underlying asset held by the Trust, ETH.
