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SEC Delays Invesco Ether Spot ETF Application
Analyst: Completely Expected
The U.S. Securities and Exchange Commission (SEC) has once again delayed its decision on approving the Invesco Galaxy Ethereum ETF. The SEC stated in a filing that additional review procedures are appropriate due to the potential legal and policy issues that the approval decision of an Ether ETF may trigger.
The agency has now delayed multiple proposals for Ether spot ETFs, including one submitted by Grayscale Asset Management last month. In its decision to delay the Invesco Galaxy Ethereum ETF, the SEC raised similar concerns as those previously raised in the Grayscale proposal, including “Ethereum’s proof-of-stake mechanism” and “centralized control by a few individuals or entities.” The SEC believes that these issues make Ether spot ETFs susceptible to fraud and market manipulation.
Regarding this decision to delay, Bloomberg analyst James Seyffart stated that it was completely expected and predicted that the SEC will continue to delay applications for similar ETFs in the coming months. However, Seyffart emphasized that the only significant reference date for Ether spot ETFs at the moment is May 23rd, as it is the final decision date for the Ether ETF application submitted by VanEck.
There are currently various opinions on when the SEC will approve Ether spot ETFs. In addition to the aforementioned May 23rd, investment bank TD Cowen previously predicted that Ether spot ETFs may not be approved until late 2025 or early 2026.
