The U.S. Securities and Change Fee (SEC) prolonged the choice interval for Invesco and Galaxy’s spot Ethereum ETF on Feb. 6.
The company’s announcement particularly issues a proposed rule change from Cboe BZX that might permit it to listing and commerce shares of the fund.
The SEC mentioned that the proposed rule change was revealed for remark within the Federal Register on Nov. 8, 2023. The company then designated an extended interval for approval on Dec. 13, 2023, extending the interval throughout which it might approve, disapprove, or institute proceedings round approval or disapproval.
The company’s newest submitting signifies that it has chosen the final choice, thereby instituting proceedings for round approval or disapproval. The proceedings request that commenters handle fraud prevention, market manipulation, and investor protections. These points are at play for all different pending Ethereum ETF proposals and had been additionally key to the approval of spot Bitcoin ETFs in January.
The SEC didn’t present precise deadlines as we speak. It mentioned that feedback ought to be submitted inside 21 days of publication within the Federal Register, and that rebuttal feedback ought to be submitted inside 35 days of publication in the identical.
SEC anticipated to determine on ETH ETFs by Could
The extension doesn’t have an effect on broader approval timelines for ETH ETFs. Bloomberg ETF analyst James Seyffart acknowledged the delay, writing:
“[The] SEC simply delayed [Invesco and Galaxy’s] Ethereum ETF. [This was] 100% anticipated and extra delays will proceed to occur in coming months. The one date that issues for spot Ethereum ETFs at the moment is Could twenty third. Which is VanEck’s remaining deadline date.”
It’s seemingly that the SEC will determine on a number of related proposals on the identical time, together with people who have later deadlines than VanEck’s proposal.
The SEC has delayed numerous different spot Ethereum ETFs in previous weeks. The company prolonged the choice interval on purposes from Constancy on Jan. 18, BlackRock on Jan. 24, and Grayscale on Jan. 25. As soon as once more, these delays don’t have an effect on the broader Could choice deadline described by Seyffart.
It’s unclear whether or not the SEC will select to approve a spot Ethereum ETF. One Polymarket prediction market presently suggests 43% odds of approval by Could. Seyffart has instructed a 60% likelihood of approval by Could, whereas one JP Morgan member has instructed a 50% likelihood of approval. A TD Cowen analysis group believes {that a} spot Ethereum ETF won’t be accredited in Could.
