The United States Securities and Exchange Commission (SEC) has postponed its decision on approving an Ethereum exchange-traded fund (ETF) for Invesco and Galaxy.
The SEC seeks additional public feedback on integrating Coinbase’s surveillance program with Ethereum ETFs.
Invesco Galaxy Spot Ethereum ETF Decision Delayed
In a recent filing, the US SEC poses numerous questions to the public regarding spot Ethereum ETFs, specifically concerning Invesco Galaxy’s application, while also delaying the application.
The application decision has been pushed back a further 35 days to give enough time for public feedback to go through.
“The Commission requests that interested persons provide written submissions of their views, data, and arguments with respect to the issues identified above, as well as any other concerns they may have with the proposal.”
However, Bloomberg ETF analyst James Seyffart claims that the delays over the next few months do not matter, as only one date matters, and that is the final deadline on VanEck’s spot Ethereum ETF:
“The only date that matters for spot Ethereum ETFs at this time is May 23rd. Which is VanEck’s final deadline date”
The regulator asked the public to provide their thoughts on the correlation between the Ethereum spot market and the CME Ethereum futures market.
Furthermore, it is important to determine whether the applicant correctly identifies similarities between a CME Ether Futures product and a spot Ethereum ETF.
The Fear and Greed Index for Ethereum, which evaluates daily market sentiment for specific assets, plummeted nearly 15% in 24 hours after the news.
Previously, at 66% greed, investor sentiment towards ETH has now shifted to a more neutral 51%.
Ethereum ETF Delays in Recent Times
Meanwhile, Seyffart believes there will be many more delays to come.
“100% expected and more delays will continue to happen in coming months.”
On January 25, the SEC postponed the decision on asset management firm BlackRock’s spot Ethereum ETF application.
Read more: Ethereum Merge: Everything You Need To Know
The SEC outlined that it has yet to receive any comments on the proposed rule change to allow BlackRock to list a spot Ethereum ETF. It first opened the floor for public comment in December 2023.
As a result, the US regulator will be extending the decision deadline to March:
“The Commission finds it appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised therein.”
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