The Securities and Exchange Commission (SEC) has postponed the decision on whether the proposed Invesco Galaxy Ethereum ETF should be approved or disapproved. The agency had previously delayed a decision on the fund in December and on Tuesday announced it was “instituting proceedings.” This decision by the SEC is due to legal and policy issues. Additionally, the SEC has also delayed the deadlines for other spot Ethereum ETF proposals, including one from Grayscale Investments last month. The agency has asked similar questions to that posed to Grayscale, including concerns regarding Ethereum’s proof-of-stake mechanism and the concentration of control or influence by a few individuals or entities.
The comments for the Invesco Galaxy Ethereum ETF are due in 21 days, with a rebuttal period lasting 35 days, according to the SEC. It is still unclear if and when the agency will approve spot Ethereum ETFs. Investment Bank TD Cowen predicts one will likely be approved by late 2025 or early 2026, whereas others believe that the SEC could approve them by May 23. SEC Chair Gary Gensler emphasized that the agency’s move last month to approve several spot bitcoin ETFs was limited to just that cryptocurrency and “shouldn’t be read to be anything other than that.”
This article brings attention to the ongoing delay in the decision-making process of the Invesco Galaxy Ethereum ETF by the SEC. The agency has raised legal and policy concerns, leading to the institution of proceedings. There is uncertainty surrounding the approval of spot Ethereum ETFs, with predictions from various sources varying widely. The SEC’s recent approval of several spot bitcoin ETFs does not necessarily indicate a similar decision will be made for Ethereum ETFs.
