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Ethereum ETF approval hangs in the balance as SEC deadline looms

TL;DR

  • SEC may delay Invesco Galaxy’s spot Ether ETF decision, impacting other proposals.
  • Analysts divided on SEC approving Ether ETFs by the May 23 VanEck deadline.
  • SEC’s Ether ETF stance is watched amid criticism of Chair Gensler.

The US SEC may delay a formal declaration on Invesco Galaxy’s application for a spot in Ether ETF, its last shot before the next deadline, July 5. While the United States Securities and Exchange Commission (SEC) has yet to respond to Invesco Galaxy’s application for a spot Ether Exchange-Traded Fund (ETF), the move potentially paves the way for other spot-based ETF proposals.

ETF approval uncertainty

According to a May 6 SEC statement, a decision regarding the application for developing Invesco Galaxy spot Ether can take up to sixty extra days. The ETF (Exchange-Traded Fund) currently has dates until July 5.

Source: SEC.

The Commission concludes that the continued existence of such a longer period will give the Commission a sufficient period to consider the proposed rule change and all issues raised during such consideration. Since then, in all cases, the SEC has extended the decisions on the applications regarding the ETH ETF creation from the eight ETF issuers, including the biggest, BlackRock, and Fidelity. The rest of the issuers, like Franklin Templeton, Hashdex, and Ark 21Shares, await further news from the organization in compliance with market expectations. 

Analysts’ contrasting views

May 23 is the final day of VanEck’s Ethereum ETF Application and the “day of truth,” according to Phill Schwager, Ether Efts analyst at Bloomberg, in a March 20 X post. After the appearance by senior Bloomberg ETF analyst Eric Balchunas on a 3BLM show, he downgraded the odds of the SEC approving. The absence of any significant signal from the SEC could be combined with the growing opposition directed to the chairperson of the SEC, Mr. Gary Gensler, as possible reasons for the approval of the release.

Source: X formerly Tweeter.

Seyffart said he considered altering his “somewhat optimistic” expectations about the Ether ETF applications he had regarded with hope. As of March 20, he is almost convinced that the SEC will likely turn them all down on May 23.

Meanwhile, a concerted opinion from ETF analysts is that it is not now. Anthony Sassano, a proponent of Ethereum, says he still has confidence that the watchdog will approve the funds before VanEck’s deadline.
Sassano elaborated that the SEC had approved Ether future ETF products one year ago; thus, it seemed logical to rely on the arguably not yet approved certain Bitcoin ETF applicants to be able to initiate discussions with the SEC, which indeed occurred when the three above mentioned entities met the SEC on March 9, 2023.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

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Benson Mawira

Benson is a blockchain reporter who has delved into industry news, on-chain analysis, non-fungible tokens (NFTs), Artificial Intelligence (AI), etc.His area of expertise is the cryptocurrency markets, fundamental and technical analysis.With his insightful coverage of everything in Financial Technologies, Benson has garnered a global readership.

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