SEC extends timeline for Invesco Galaxy ETH Spot ETF decision

The United States Securities and Exchange Commission (SEC) has announced a postponement in its decision regarding the approval of the Invesco Galaxy Ethereum Spot ETF.

Invesco, a global investment management firm, had applied for the Ethereum spot exchange-traded fund with the SEC earlier this year, and the decision was originally expected within a specified timeframe.

The commission cited Section 19(b)(2) of the 1934 Act, which describes the procedure for approving rule amendments, in a document that was made public.

This clause states that the SEC must act within 45 days after notice of a proposed rule change is published. Nevertheless, the SEC retains the authority to prolong this duration by up to 90 days at its discretion, as long as it provides a rationale for the extension.

The SEC considers this delay necessary to ensure that the proposed rule change and the issues addressed therein are carefully considered, according to the official statement from the SEC.

The SEC has also said that it plans to take advantage of the extra time to thoroughly review the application and any relevant circumstances before making a judgment.

Invesco’s application uses Galaxy Digital Funds as an execution agent to help with the ETF trust’s ETH purchasing and selling. Stakeholders in the financial markets are interested and hopeful, curious and hoping that ETH and other cryptocurrencies will be added to exchange-traded funds (ETFs).

As the SEC takes the necessary time to delve into the intricacies of the proposed ETF, stakeholders eagerly await further developments, recognizing the importance of regulatory clarity in shaping the future landscape of cryptocurrency investment products.

Following Section 19(b)(2) of the Act, 5, the Commission has set February 6, 2024, as the deadline for either approving or disapproving the proposed rule change (File No. SR-CboeBZX-2023-087) or initiating procedures to decide whether to reject.

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