The United States Securities and Exchange Commission (SEC) has delayed its decision on whether to approve or reject a proposed Ethereum (ETH) spot exchange-traded fund (ETF) from Invesco and Galaxy Digital. This postponement reflects the ongoing evaluation process undertaken by the SEC.

On December 13, the SEC made an announcement, revealing its intention to extend the evaluation period. Consequently, this extension is for a rule change proposal. The proposal’s goal is to allow the listing and trading of shares for the Invesco Galaxy Ethereum ETF on the Cboe BZX Exchange.

SEC Delays Decision on Crypto ETF, Sets New Deadline

The suggested crypto investment vehicle is just one among several currently under consideration by the commission. Notably, the SEC has not yet sanctioned an ETF directly linked to Bitcoin (BTC) or other cryptocurrencies.

Furthermore , on December 13, the notice declared that December 23, 2023, marks the 45th day after the publication of the proposed rule change. However, the Commission has decided to extend this 45-day time period, as outlined in the notice;

“The Commission […] designates February 6, 2024, as the date by which the Commission shall either grant approval, reject, or initiate proceedings to determine disapproval of the proposed rule change.”

Invesco Galaxy in Focus: Surge in Crypto ETF Applications and SEC Consultations

In September, Invesco and Galaxy Digital submitted the application for the spot ETH ETF after reactivating their application for a Bitcoin ETF in June.

Analysts suggest that if the SEC approves a spot crypto ETF encompassing Bitcoin or Ether, it may pave the way for simultaneous approvals. These approvals could involve funds from various entities.

As of the latest update, BlackRock, Hashdex, ARK 21Shares, VanEck, and Fidelity are among the firms that have submitted applications for spot crypto ETFs. These applications reflect a growing trend in the industry towards seeking approval for cryptocurrency-related investment products.

However, in the past 30 days, SEC memos disclose that representatives from specific asset management firms met with commission officials. Moreover, these meetings were conducted to discuss the various offerings related to ETFs in the cryptocurrency space.

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