Ethereum ETF: SEC extends the suspense!

The United States Securities and Exchange Commission (SEC), the world champion of procrastination regarding ETFs, has resurfaced. A newly filed document has announced a further 60-day delay in the decision on the Invesco Galaxy Ethereum tracker. A habit that no longer surprises anyone in the crypto universe.

The SEC Further Delays Ethereum ETF Decision: Indecision Reigns Supreme!

Gary Gensler and his team seem reluctant to approve spot Ethereum ETFs, even though they have already approved Ethereum Futures ETFs. The numerous decision postponements are proof of this. The SEC had even opted for public consultation to better defend its position. And it doesn’t stop there!

According to Cointelegraph, the United States Securities and Exchange Commission (SEC) has once again postponed its decision on the Invesco Galaxy’s request to create an Ethereum spot exchange-traded fund (ETF).

In a document filed on May 6, the SEC has given itself an additional 60 days to rule on the Invesco Galaxy’s application for a spot ETH ETF, thus setting the next deadline on July 5th.

“The Commission finds it 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 issues it raises,” wrote the SEC.

Over the past few months, the SEC has delayed decisions on the applications of eight potential Ethereum ETF issuers, confirming the expectations of analysts, including VanEck, BlackRock, Fidelity, Franklin Templeton, Hashdex, and Ark 21Shares.

Issuers Left in Total Limbo!

Last March, Eric Balchunas, Bloomberg ETF’s senior analyst, lowered his forecasts for SEC ETF approvals from 50% to 35%. He was less optimistic about the approval of VanEck’s offering before the deadline.

According to Balchunas, the extended “radio silence” from the SEC towards potential fund issuers, combined with a growing political pushback against Gary Gensler, the chairman of the SEC, have motivated this decision.

Similarly, Bloomberg’s ETF analyst, James Seyffart, has revised his “cautiously optimistic” stance. Since March 20, he expects a “final rejection” of all Ethereum ETF requests by the SEC on May 23rd.

Despite this consensus, Ethereum advocate Anthony Sassano remains confident in the approval of the funds before VanEck’s deadline, citing the SEC’s approval of Ethereum futures ETF products in 2023 and other recent meetings between regulators and industry firms.

MicroStrategy’s Michael Saylor is more than skeptical.