SEC Sheds Galaxy Spot Ethereum ETF Decision Until July
The United States Securities and Exchange Commission has delayed a decision on Galaxy Invesco's application for an exchange-traded fund (ETF).
In a May 6 filing, the SEC gave the Galaxy ETF another 60 days to call, with the next deadline set for July 5.
“The Commission finds that it is appropriate to set an extended period within which to issue an order to change or adopt the proposed rule in order to allow sufficient time to consider the issues raised therein,” the SEC wrote.
In recent months, the SEC has delayed decisions on applications from eight futures Ether ETF issuers, including BlackRock, Fidelity, Franklin Templeton, Hashdex and Ark 21Shares – against analyst expectations.
May 23 is the application deadline for VanEck's Ether ETF and “the only deadline that matters,” Bloomberg EFA analyst James Seifert said in a March 20 X post.
In March, senior Bloomberg ETF analyst Eric Balchunas cut his SEC odds to 35% from 50% — because he believed the regulator would approve VanEck's bid by the deadline.
Related: SEC Classifies Ether as Security, Bans Spot Ether ETFs – Michael Saylor
Speaking to Cointelegraph on March 12, Balchunas noted a long period of “radio silence” from the SEC toward potential funders, coupled with increased political pressure on SEC Chairman Gary Gensler, as reasons for the decreased likelihood of approval.
Seifert says his “cautiously optimistic view” of pending Ether ETF applications has changed. It expects all Ether ETF applications from March 20th to be “finally rejected” by the SEC on May 23rd.
ETF analysts believe that despite this deal, Ethereum advocate Anthony Sassano said the regulator could approve the currency by VanEck's final deadline.
Sassano last year looked at the agency's approval of Ether's future ETF products and cited additional reasons why the SEC can still approve applications such as the March 9 meeting between the regulator, crypto asset management firm Grayscale, and crypto exchange Coinbase.
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