The Securities and Exchange Commission (SEC) has decided to postpone its decision on the approval or disapproval of a proposed spot Ethereum Exchange-traded fund (ETF) presented by Invesco and Galaxy Digital.
In a notice issued on December 13, the SEC announced its intention to extend the timeframe for determining whether to greenlight or reject a proposed rule change. This alteration would permit the Cboe BZX exchange to list and trade shares of the Invesco Galaxy Ethereum ETF.
This spot cryptocurrency investment vehicle is among several similar proposals under the commission's consideration. To date, the SEC has not sanctioned an ETF that directly invests in cryptocurrencies like Bitcoin or Ethereum.
The notice specified that the original 45-day period following the proposal's issuance, ending on December 23, 2023, would be extended. The SEC has designated February 6, 2024, as the new date to either approve or disapprove the proposed rule change or initiate proceedings to evaluate it further.
In September, Invesco and Galaxy Digital submitted the application for a spot ETH ETF, following the "relaunch" of a spot Bitcoin ETF application in June. There is speculation among experts that the SEC might approve crypto ETFs for various companies concurrently if it ultimately decides to approve a spot crypto ETF, whether for Bitcoin or Ethereum.
Currently, several firms, including BlackRock, Hashdex, ARK 21Shares, VanEck, and Fidelity, have applied for spot crypto ETFs. Over the past 30 days, SEC memos have revealed meetings between representatives from multiple asset management companies and commission officials to discuss these proposed ETFs.
