The Sec Has Postponed Its Decision On The Ether Etf Application Submitted By Galaxy Digital Until July.

The US Securities and Exchange Commission (SEC) has postponed its decision on Invesco Galaxy's spot Ether ETF application, setting the next review date for July 5.

The U.S. Securities and Exchange Commission (SEC) has postponed its decision on the Invesco Galaxy's spot Ether exchange-traded fund (ETF) application. According to a document released on May 6th, the SEC granted an additional 60 days to decide on Invesco Galaxy's spot Ether ETF, with July 5th set as the next deadline. In the document, the SEC stated, "The Commission finds that it is appropriate to designate a longer period within which to issue an order approving or disapproving the proposed rule change so that it has sufficient time to consider the proposed rule change and the matters raised herein."

In recent months, the SEC has deferred decisions on eight potential Ether ETF applications, including those from BlackRock, Fidelity, Franklin Templeton, Hashdex, and Ark 21Shares, in line with analyst expectations.

Bloomberg ETF analyst James Seyffart noted in a post on X dated March 20th that May 23rd is the final deadline for VanEck's Ether ETF application and is considered the "one critical date."

In March, senior Bloomberg ETF analyst Eric Balchunas lowered the likelihood of the SEC approving ETFs from 50% to 35%. Balchunas has lost hope that the SEC will approve VanEck's application by the final deadline, citing increased political pressure on SEC Chairman Gary Gensler and a prolonged period of "radio silence" from the SEC towards fund issuers as reasons for the diminished likelihood of approval.

Meanwhile, Bloomberg ETF analyst James Seyffart mentioned that his "cautiously optimistic" stance on the pending Ether ETF applications has shifted. As of March 20, he expects that all Ether ETF applications will likely be rejected by the SEC by May 23.

Contrary to this, Ethereum advocate Anthony Sassano has maintained his belief that the regulator could approve the funds by VanEck's deadline. Sassano cited the SEC's approval of Ether futures ETF products in 2023 and a meeting held on March 9 between the regulator, crypto asset management company Grayscale, and cryptocurrency exchange Coinbase as other reasons why the applications might still be approved.

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