SEC Takes Charge: Invesco Galaxy Spot Ether ETF Sparks Action, Extends Deadline

The SEC greenlights spot Bitcoin exchange-traded funds (ETFs) for the first time on January 10th.

The U.S. Securities and Exchange Commission has postponed its verdict on a proposed spot Ether (ETH) exchange-traded fund (ETF) by Invesco and Galaxy Digital, amidst ETH trading at $2,377.

On February 6th, the SEC announced it would commence proceedings to evaluate a proposed rule change enabling the Cboe BZX Exchange to list and trade shares of the Invesco Galaxy Ethereum ETF. Public input will extend the decision deadline by an additional 35 days upon publication in the Federal Register.

The SEC has the authority to extend the decision-making process for the Invesco Galaxy spot Ether ETF by up to 240 days. The asset manager submitted its proposal to the commission in October 2023, and after publication in the Federal Register in November, the SEC has until July 2024 to render a verdict on approving or rejecting the investment vehicle.

Bitcoin ETFs, with BTC trading at $43,062, have been tradable on U.S. exchanges since January 10th, post a milestone SEC approval. The SEC is currently reviewing applications from various firms, such as BlackRock, Hashdex, ARK 21Shares, VanEck, and Fidelity, for spot ETH ETFs.

Upon approving spot BTC ETFs for the first time, the SEC simultaneously greenlit 11 applications. While experts speculate a similar approach for spot ETH investment vehicles, the SEC has provided minimal public commentary. VanEck anticipates an early decision, with an SEC deadline set for May 23rd.

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