SEC delays decision on Galaxy Invesco Ethereum ETF, new deadline set for July

The U.S. Securities and Exchange Commission (SEC) has once again delayed its decision on the approval of the Ethereum (ETH) exchange-traded fund (ETF) proposed by Galaxy Invesco, with a new deadline set for July 5th.

SEC Delays Decision on Ethereum ETF by 60 Days

In a document released on May 6th, the SEC has granted itself an additional 60 days to make a decision. The SEC stated that more time is needed to consider the proposed rule change and related issues, indicating the regulatory body's thoroughness and diligence in the review process.

Status of Companies' Applications

Aside from Galaxy Invesco, seven other companies including BlackRock, Fidelity, Franklin Templeton, Hashdex, and Ark 21Shares are also awaiting SEC approval, showcasing the high level of interest and market demand for an Ethereum ETF. Bloomberg ETF analyst James Seyffart noted that all applications will receive final responses by May 23rd, which is seen as the "sole important deadline."

Analysts See Low Approval Likelihood

Bloomberg's senior ETF analyst Eric Balchunas has lowered the approval odds from 50% to 35%, indicating a pessimistic view towards SEC approving VanEck's application before the final deadline. Additionally, due to the prolonged lack of response from the fund issuers and political backlash against SEC Chairman Gary Gensler, analysts have tempered their expectations for approval.

Community Remains Optimistic

Ethereum advocate Anthony Sassano remains confident that the SEC could approve VanEck's fund application before the final deadline. He cited last year's approval of Ethereum futures ETF products and a meeting in March between the SEC, Grayscale, and Coinbase as reasons to believe that approval is still possible.