Ethereum ETF: US SEC Delays Invesco Galaxy Proposal

The U.S. Securities and Exchange Commission (SEC) is taking its time with its decision on the Invesco Galaxy spot Ethereum ETF.

Delay in Ethereum ETF Decisions 

The Commission has determined that it is appropriate to allocate a longer duration for issuing an order on the proposed rule change. This extension will allow the agency to have sufficient time to thoroughly evaluate the proposal and the associated concerns. 

The filing posted on Monday by the agency shows that July 5 is the next deadline to either approve or disapprove the proposed spot Ethereum ETF.

The SEC had previously postponed taking action on the Invesco Galaxy application and sought public input back in February. It is not uncommon for the commission to take its time in a bid to thoroughly review proposals before making a final decision. 

The SEC recently postponed its decision on the 7RCC Spot Bitcoin and Carbon Credit Future ETF proposal. The Grayscale and Franklin Templeton Ethereum ETF faced a similar situation. The proposal for the Franklin Ethereum ETF had to be extended, and the SEC will not decide until June 11, 2024. 

The agency also decided to put the brakes on the Grayscale Ethereum Trust. This shows the agency is not displaying favoritism to the applicants. 

Delays sparks speculation

Standard Chartered, the banking giant, had high hopes for the SEC giving the go-ahead for the spot Ethereum ETF approval by the end of this month. However, it seems its optimism is fading away.

Many things are happening that are making people doubt whether Ethereum ETF will get approved by the SEC. One of the reasons is that reports are saying the SEC might classify Ethereum as a security.

Ethereum is visibly growing, making its presence felt in the crypto world. The protocol managed to break a big network stalemate, and on-chain data is showing a significant surge in activity.  

If the SEC denies the ETF approval, it might stir a reversal in Ethereum’s growth. At the time of writing, Ethereum is changing hands for $3,072.59, down 2.16% in the past 24 hours.