Pessimism surrounding the U.S. Securities and Exchange Commission’s (SEC) approval of a spot Ethereum ETF is expected to increase. selected Invesco Galaxy’s decision on the approval process for its ETH spot ETF was delayed, adding to uncertainty in the cryptocurrency market.
SEC Withdraws Invesco’s Ethereum Spot ETF
Invesco Galaxy in October last year contaminated Proposed rule changes for listing and trading shares of a commodity-based trust, the Ethereum Spot ETF, with the SEC pursuant to the Securities Exchange Act of 1934 and Rule 19b-4 thereunder, published in the Federal Register in November.
Invesco Galaxy Ethereum Spot ETF By maintaining ETH units with different custodians, we aim to mirror the performance of the Ether spot price. The document states that Invesco is the sponsor and Galaxy Digital is the executing agent responsible for selling ETH to cover the trust’s costs. But the committee decided to postpone a decision on the company’s proposal, according to documents filed Monday.
The SEC emphasized that it needs more time to fully evaluate the spot ETF proposal, declaring that it needs additional time to analyze related concerns and proposed rule changes. The regulatory watchdog was therefore given an additional 60 days to approve or disapprove the proposal.
The contents of the document are as follows:
The Committee determines that it is appropriate to specify a longer period of time for issuing an order approving or disapproving a proposed rule change in order to have sufficient time to consider the proposed rule change and the issues raised therein.
Given that the SEC has a total extension period of 240 days from the date of publication before making a final decision on approving or disapproving the application, the SEC has until July 5, 2024 to make a final decision on Invesco Galaxy’s Ethereum Spot ETF. is expected to come down.
Invesco Galaxy It is the latest asset management firm to see its Spot ETF proposal delayed by the agency. Other famous companies such as Blackrock have also faced the same fate over time.
Blackrock’s proposed Spot Ethereum ETF was delayed in March, the second time the committee has delayed the company’s proposal. So far, these repeated delays from the SEC have cast a dark shadow over exchange products within the cryptocurrency community.
ETH Spot ETF Confirms Pessimism in Top Cryptocurrency Figures
with the passage of time, Ethereum Spot ETFs, unlike Bitcoin, have seen continued negative sentiment from top figures in the cryptocurrency industry. Bitcoin showed solid optimism in these numbers. Last month, Tron founder Justin Sun express His disbelief about the product getting approval by the May 31 deadline. “My honest opinion (NFA) is that the Ethereum ETF will not be approved in May,” he said.
Sun believes the industry has already reached this stage, but argues that the cryptocurrency industry needs to prepare for a long-term training process to help authorities and regulators understand cryptocurrencies.
today, probability The approval rate for the ETH spot ETF is currently just 12%, which is a significant decrease from the 76% probability recorded in January following the approval of the Bitcoin spot ETF.
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