SEC delays decision on Invesco Galaxy Ethereum ETF until July.

The United States Securities and Exchange Commission (SEC) has decided to postpone its decision on Invesco Galaxy’s application for an exchange-traded fund (ETF) focused on spot Ether (ETH). In a filing on May 6, the SEC extended the deadline for the decision by 60 days, with the new deadline set for July 5. The commission stated that it needed more time to thoroughly review the proposed rule change and the related issues. This delay follows a pattern of the SEC postponing decisions on Ether ETF applications from multiple issuers, including BlackRock, Fidelity, Franklin Templeton, Hashdex, and Ark 21Shares. Bloomberg ETF analyst James Seyffart has emphasized that the final deadline for VanEck’s Ether ETF application on May 23 is the most crucial. However, senior Bloomberg ETF analyst Eric Balchunas has downgraded the probability of the SEC approving the ETFs from 50% to 35%, citing a lack of communication from the SEC and growing pushback against SEC Chair Gary Gensler. Seyffart shares this sentiment and now expects all Ether ETF applications to be denied by the SEC on May 23. Despite this pessimism, Ethereum advocate Anthony Sassano remains hopeful that the SEC could still approve the applications, pointing to the agency’s approval of Ether futures ETF products in 2023 and a recent meeting between the SEC, Grayscale, and Coinbase.