The U.S. Securities and Exchange Commission has extended the approval deadline for the Invesco Galaxy Ethereum ETF. This move has generated a lot of interest among investors and market analysts.
Extension of review period: Details of submission contents
According to the SEC's latest court filing dated May 6, 2024, the Commission announced that it needed additional time to consider the Invesco Galaxy Ethereum ETF proposal originally submitted by the Cboe BZX Exchange. did.
With this announcement, the review period for determining Ethereum ETFs has been extended to July 5, 2024. The SEC reasons that this extension requires more time to consider the impact of Ethereum ETF approval on the market.
“The Commission will issue a period of time before issuing an order approving or disapproving the proposed rule change to allow sufficient time to consider the proposed rule change and the issues raised therein,” the filing states. We judged that it would be appropriate to set it for a long time.”
The Ethereum ETF’s journey began on October 20, 2023, when Cboe BZX Exchange filed its first request with the SEC. Public comment on the proposal then began on November 8, 2023.
Following standard procedure, the SEC extended the review period to February 2024 and again extended the decision to July of this year.
We cannot expect a firm decision to be made in July. The SEC would likely deny, followed by a lengthy process in which Galaxy, BlackRock or other applicants would appeal the decision in court.
The conclusion is
While the SEC's extension of the review period for the Invesco Galaxy Ethereum ETF should represent the commission's best efforts in its investigation, the reality is quite different. Market experts say the real reason the SEC is delaying the issuance of a Spot Ethereum ETF is due to Gensler’s aggressive stance on cryptocurrencies and the ongoing investigation into Ethereum (“ETH Gate”) I believe.
MicroStrategy CEO and noted Bitcoin maximalist Michael Saylor said in a recent speech that the SEC will likely reject the Spot Ethereum ETF.
Everyone will be watching to see what impact this ruling will have on July 5, 2024.
