The US Securities and Exchange Commission (SEC) has decided to postpone its verdict on #Invesco and#Galaxy Digital 's case to register a spot Ethereum ETF.
The SEC has extended the case until July 2024.
According to the regulator, the postponement is necessary due to significant changes in current law that will affect the approval of spot Ethereum ETFs.
As a result, the joint application filed by the companies will be reviewed an additional 35 days after the decision is registered in the federal register. The next interim deadline for the case is set for 12 March 2024, with the final deadline set for 20 July 2024.
Bloomberg Intelligence analyst James Seyffarth said the SEC's decision was fully expected. He also predicted that the SEC will take similar action in the coming months.
SEC just delayed @InvescoUS & @galaxyhq's #Ethereum ETF. 100% expected and more delays will continue to happen in coming months.
— James Seyffart (@JSeyff) February 6, 2024
The only date that matters for spot #ethereum ETFs at this time is May 23rd. Which is @vaneck_us's final deadline date pic.twitter.com/gkVZL2QuPK
The approval of the spot Ethereum-ETF remains uncertain. Experts at Standard Chartered Bank suggest it could happen in May 2024. In such a scenario, #SEC is likely to favour the first applications and their respective deadlines.
On the other hand, analysts at investment bank TD Cowen offer a different timeline, suggesting that approval may not happen before the fourth quarter of 2025.
In both cases, experts point to the ambiguous legal status of #Ethereum as one of the main obstacles to potential approval of this new class of products.
