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The U.S. Securities and Exchange Commission (SEC) has opted to postpone its verdict on the Invesco Galaxy’s spot Ethereum exchange-traded fund (ETF) application.
Initially expected by December 23, 2023, the SEC has extended the review period, citing the need for additional time to comprehensively evaluate the proposed rule change and address pertinent issues. The revised deadline for the decision is now scheduled for February 6, 2024.
🔴 The SEC has postponed its decision on Invesco Galaxy's Ethereum ETF application to February 6, 2024. #SEC #Ethereum #Crypto pic.twitter.com/351vrLH7LM
— BlockchainIST News (@blockchainistn) December 14, 2023
The U.S. Securities and Exchange Commission (SEC) has officially defined February 6, 2024, as the crucial deadline by which the Commission must either grant approval, disapproval or initiate proceedings to determine whether to disapprove the proposed rule change regarding Invesco Galaxy’s Ethereum exchange-traded fund (ETF) application.
Ethereum ETF Applications: A Growing Trend in Financial Markets
In September, both Invesco and Galaxy Digital collaborated in the submission of an application for a spot in Ethereum ETF. The stated objective, detailed in the S-1 registration statement, is to replicate the performance of the spot price of ether. This is executed through the secure custody of crypto units, diligently managed by a distinct custodian.
As of today, prominent financial institutions, including BlackRock, ARK, Fidelity, VanEck, and Hashdex, have submitted applications for spot Ethereum ETFs to the SEC. These applications are presently awaiting final decisions from the regulatory body.
Ethereum ETF: SEC Engages in Meetings with Leading Bitcoin ETF Issuers
Recent filings reveal the active involvement of the U.S. Securities and Exchange Commission (SEC) in meaningful discussions with major Bitcoin ETF issuers. Notable entities such as BlackRock, Grayscale, Franklin, and Fidelity have been actively engaged in these consultations.
ETF analyst James Seyffart, representing Bloomberg Intelligence, highlights the substantial impact of these meetings, emphasizing the resurgence of enthusiasm and momentum in the ongoing deliberations regarding the potential approval of spot Bitcoin ETFs. The collaborative nature of these engagements underscores a concerted effort to navigate the regulatory landscape and explore avenues for advancing cryptocurrency investment opportunities.
As the SEC gears up for a mid-January decision on BlackRock’s application, the ongoing dialogues between regulatory bodies and major Bitcoin ETF issuers assume paramount importance. The frequent engagements, coupled with strategic modifications to applications—such as BlackRock’s innovative inclusion of cash purchases for new fund shares—underscore a collaborative endeavor to align with the evolving landscape of regulatory expectations.
In a notable observation, ETF analyst James Seyffart hints at a potential shift in the SEC’s approach, advocating for the simultaneous approval of multiple applications. This proposed strategy seeks to establish a fair and level playing field among competitors in the dynamic realm of cryptocurrency investments. With the SEC’s meticulous review process unfolding, the global crypto community anxiously awaits what could potentially be a landmark decision in the history of cryptocurrencies, holding the promise of reshaping the institutional landscape for participation in digital assets.
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