Spot Ethereum ETF approval timeline uncertain amid SEC’s deliberations

The U.S. Securities and Exchange Commission (SEC) has opted to prolong its decision-making process regarding the proposed spot Ether exchange-traded fund (ETF) from Invesco and Galaxy Digital. 

This move comes after the SEC’s groundbreaking approval of spot Bitcoin ETFs earlier. The delay has been initiated to allow for additional assessment, raising the deadline by an additional 35 days upon the publication of the proposal in the Federal Register.

Institution of proceedings for Invesco Galaxy Ethereum ETF

The SEC disclosed its intention to institute proceedings to evaluate whether to greenlight or reject a proposed rule amendment. This amendment seeks to enable the Cboe BZX Exchange to list and trade shares of the Invesco Galaxy Ethereum ETF. 

By opening the proposal to public commentary, the SEC aims to gather further insights before reaching a decision. The delay tactic could extend the decision-making process for up to 240 days, with the SEC having until July 2024 to render a final verdict.

Expansion of ETF landscape and pending applications

Following the SEC’s historic approval, which allowed for the trading of spot Bitcoin ETFs, several asset managers entered the fray with their own ETF applications, further diversifying the market. Notable applicants for spot ETH ETFs include BlackRock, Hashdex, ARK 21Shares, VanEck, and Fidelity, all vying for approval to offer investors exposure to Ether. 

While the SEC deliberates on these applications, market observers are keenly monitoring any signals or cues from the regulatory body regarding its stance on Ethereum ETFs.

Potential regulatory approaches and upcoming deadlines

The SEC’s approach to approving spot BTC ETFs saw simultaneous approval of 11 applications, fueling speculation about a similar strategy for spot ETH investment vehicles. However, the SEC has been reticent on its plans, leaving industry experts to speculate on potential outcomes. 

Among the applicants awaiting a decision, VanEck stands out with a deadline set for May 23. As the deadline approaches, the market eagerly awaits any indications of the SEC’s stance on Ether ETFs and its potential implications for the broader cryptocurrency market.