Summary
The Securities and Exchange Commission (SEC) has further delayed its decision on the Invesco Galaxy Ethereum ETF. The agency has cited legal and policy issues as reasons for the delay. The SEC has also asked questions regarding Ethereum’s proof-of-stake mechanism and the concentration of control or influence by a few entities. Comments on the ETF proposal are due in 21 days. It remains uncertain when the SEC will approve spot Ethereum ETFs, with some analysts predicting approval by late 2025 or early 2026, while others believe it could happen by May 2023. SEC Chair Gary Gensler has clarified that the approval of spot bitcoin ETFs does not indicate approval for other cryptocurrencies.
Key Points
1. The Securities and Exchange Commission has delayed its decision on whether to approve or disapprove the proposed Invesco Galaxy Ethereum ETF. The agency has pushed back deadlines for other spot Ethereum ETF proposals as well.
2. The SEC has raised concerns about Ethereum’s proof-of-stake mechanism and the concentration of control or influence by a few individuals or entities. They are investigating whether these factors could make the fund susceptible to fraud and manipulation.
3. Comments on the Invesco Galaxy Ethereum ETF are due in 21 days, with a rebuttal period lasting 35 days, according to the SEC. The approval of spot Ethereum ETFs by the agency remains uncertain, with some analysts predicting approval by late 2025 or early 2026, while others are skeptical of approval anytime soon.