The SEC has pushed back its decision on a major Ethereum ETF, filed by Invesco and Galaxy Digital in September. For Bloomberg’s James Seyffart, the crucial timetable is now May 23 for VanEck.
SEC Delays Decision on Ethereum ETFs, While Bitcoin ETFs Are All the rage
In January, the Securities and Exchange Commission (SEC) gave the green light to 10 Bitcoin ETFs, causing excitement in financial markets. These funds are now actively traded and have attracted massive inflows.
The only date that matters for Ethereum spot ETFs right now is May 23. This is VanEck’s deadline. »
However, another development is attracting attention: the delay of the SEC’s decision on a highly anticipated Ethereum Spot ETF. Tuesday’s filing, revealed by Decryptshows that the SEC has postponed its decision on the product proposed by Invesco and Galaxy Digital, initially filed last September.
If approved, this spot ETF would allow investors to gain exposure to ETH, the second largest cryptocurrency, without having to purchase and store the asset themselves.
Analysts, such as those at Standard Chartered Bank and Bloomberg, are now predicting that an ETH ETF could be approved by May. The bank points out that the SEC has not yet classified ETH as a security, which increases the chances of approval for such investment vehicles.
However, the SEC also strengthened its measures against cryptocurrency companies selling unregulated securities, highlighting the growing regulatory challenges in the sector.
A long-awaited green light
The U.S. Securities and Exchange Commission, an expert in procrastination, frequently delays its decisions on spot ETFs, including applications from giants like BlackRock and Fidelity.
According to information from The Block, no decision is expected before March regarding Ethereum ETFs. March 10 could become a crucial date when the SEC will have to decide on approval requests from BlackRock, ARK 21 Shares, VanEck and Fidelity.
Forecasts diverge: James Seyffart of Bloomberg mentions possible validation in May, while TD Cowen envisages approval not before 2025. This caution would be motivated by political considerations, Gary Gensler, at the head of the SEC, seeking to avoid confrontations internal on cryptocurrency.
In the event of an initial rejection of Ethereum ETFs, the process could extend into 2026, between new filings, reviews and possible legal challenges.
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