SEC Postpones the Outcome on Invesco Galaxy’s Spot Ethereum ETF to July

The US securities regulator, the SEC, has again pushed the date to decide on Invesco Galaxy's spot Ethereum ETF application to July. This marks the third time the agency has delayed a decision on Invesco's application, which was submitted in October 2023.

While Ether enthusiasts anticipated a positive outcome, the postponement has turned them less optimistic about a possible spot ETH ETF approval.

The SEC Sets A New Deadline For Invesco's Spot ETH ETF Application

According to a May 6 filing, the US SEC has extended the deadline to decide on Invesco Galaxy's spot ETH ETF application by 60 days. It has adopted July 5 as the new deadline. The watchdog said the extension would give it ample time to consider the proposed changes and issues raised within the application.

Notably, Invesco Galaxy filed its proposal for a spot in Ethereum ETF on October 20, 2023. The application was published in the Federal Register on November 8, 2023. The SEC has 240 days from the publication date for possible extensions before declaring its decision regarding the application.

Meanwhile, the latest delay marks the SEC's third time postponing its decision regarding the spot ETH ETF application. The first postponement came in December 2023. The regulator also delayed the second date set for February to May while postponing its decision again to July 5, 2024.

SEC May Deny All Spot Ethereum ETF Applications; Market Analysts

The SEC has delayed decisions on all eight applications for spot ETH ETFs. Some of the applicants include Fidelity, BlackRock, Grayscale, VanEck, Hashdex, ARK Invest, and Invesco.

According to the SEC's schedule for deciding on the ETFs, VanECK's application has a final deadline of May 23.

Within the past few months, the trend of events has waned many hopes. Some reports revealed that the SEC is on the path to declaring Ethereum security. The regulator issued subpoenas to some Ethereum-related companies requesting their financial records and deals with the Ethereum Foundation.

Also, the major Ethereum backer, Consensys, recently sued the SEC for trying to classify Ether as security. The firm maintained that applications that enable users to transact using Ethereum are not securities brokers. It says the SEC lacks the basis to bring the crypto asset under its regulatory jurisdiction.

So, market analysts are less confident about getting the SEC's approval of a spot Ethereum ETF.

In a March 19 X post, Bloomberg ETF analyst James Seyffart said the SEC's continuous delay has changed his optimism. He noted that VanEck's final date is the only deadline that matters." Seyffart expects the SEC to deny all Ethereum ETF applications by May 23.

Moreover, in March, Bloomberg senior analyst Eric Balchunas said he is 25% pessimistic about the SEC's approval for ETF ETFs. He noted the regulator's radio silence" even as the final deadlines approached.

However, despite the gloomy outlook from the delayed deadlines, few are optimistic about approving a spot ETH ETF. An Ethereum advocate, Anthony Sassano, is optimistic about the SEC approving the ETFs upon VanEck's final deadline.

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