US SEC Delays Decision on Invesco and Galaxy Digital's Joint Ethereum ETF
US SEC Delays Decision on Invesco and Galaxy Digital’s Joint Ethereum ETF
The U.S. Securities and Swap Commission (SEC) has prolonged the choice period for Invesco and Galaxy’s attach of living Ethereum ETF, as anticipated by analysts.
This extension pertains to a proposed rule alternate from Cboe BZX that will enable the itemizing and trading of shares of the fund.
The SEC’s decision follows the e-newsletter of the proposed rule alternate for philosophize in the Federal Register on Nov. 8, 2023. Therefore, on Dec. 13, 2023, the agency designated a longer period for approval, extending the time body in the course of which it could perchance doubtless approve, dislike, or institute complaints surrounding approval or disapproval.
The most in model submitting from the SEC implies that it has chosen to institute complaints for approval or disapproval. The agency has requested commenters to handle concerns related to fraud prevention, market manipulation, and investor protections, components that were pivotal in the approval of attach of living Bitcoin ETFs in January.
Proper time closing dates were no longer offered by the SEC. Alternatively, it acknowledged that feedback must be submitted internal 21 days of e-newsletter in the Federal Register, with rebuttal feedback due internal 35 days of e-newsletter in the the same.
SEC upright delayed @InvescoUS & @galaxyhq’s #Ethereum ETF. 100% anticipated and more delays will proceed to happen in coming months.
The largest date that issues for attach of living #ethereum ETFs right this moment is Could well furthermore fair twenty third. Which is @vaneck_us’s final time limit date pic.twitter.com/gkVZL2QuPK
— James Seyffart (@JSeyff) February 6, 2024
Could well furthermore fair Remains Key Time Physique for Space Ethereum ETF Approval
While the extension affects the timeline for Invesco and Galaxy’s ETF proposal, it does no longer impact the broader approval timelines for Ethereum ETFs. Bloomberg ETF analyst James Seyffart smartly-known the delay and emphasised Could well furthermore fair twenty third as a predominant date, which marks VanEck’s final time limit for its proposal.
The SEC is anticipated to reflect on more than one the same proposals concurrently, potentially including those with time closing dates beyond VanEck’s proposal.
Over the last weeks, the SEC has postponed varied varied attach of living Ethereum ETFs, including functions from Constancy on Jan. 18, BlackRock on Jan. 24, and Grayscale on Jan. 25. These delays, alternatively, enact no longer alter the broader decision time limit field for Could well furthermore fair.
The possibility of the SEC approving a attach of living Ethereum ETF stays unsure. Polymarket prediction market in the in the period in-between suggests a 43% chance of approval by Could well furthermore fair. Seyffart estimates a 60% chance, whereas a JP Morgan member suggests 50%.
Source : cryptonews.com
