The US Securities and Exchange Commission (SEC) has extended its decision on whether to approve or disapprove a spot Ethereum exchange-traded fund (ETF) application by investment management company Invesco and crypto financial services firm Galaxy Digital.
The SEC gave a 45-day extension, allowing itself until February 6, 2024, to make its decision on the product.
According to a notice published on Dec. 13, 2023, the SEC’s initial decision on the Invesco Galaxy spot Ethereum ETF was supposed to happen on Dec. 23, 2023, which would have been the 45th day after publication of the notice for the product.
While the extension is coming earlier than expected, the SEC is designating another 45 days to decide if it would approve or disapprove the spot ETH application, with the new date falling on Feb. 4, 2024.
An excerpt from the notice reads:
“The Commission finds it appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised therein.”
The SEC further stated:
“Accordingly, the Commission, pursuant to Section 19(b)(2) of the Act, designates February 6, 2024, as the date by which the Commission shall either approve or disapprove, or institute proceedings to determine whether to disapprove, the proposed rule change.”
The latest delay comes shortly after the American regulator recently extended its decision on another spot Ethereum ETF proposed by crypto asset manager Grayscale Investments, with the new deadline falling on Jan. 25, 2024.
So far, there are seven spot ETH ETF filings before the SEC. In addition to Grayscale Investments and Invesco/Galaxy, Fidelity, BlackRock, VanEck, Hashdex, and Ark Invest/21 Shares filed similar applications with the Commission.
Apart from delaying spot ETFs focused on Ethereum, the SEC has also designated longer periods to spot Bitcoin ETFs, which have more applicants.
Meanwhile, there were recent reports that the conversations about spot Bitcoin ETFs with the Commission were reportedly in advanced stages, sparking hope about the potential approval of applications.
The race for the launch of a spot BTC ETF intensified in mid-2023, with heavyweights such as BlackRock, Franklin Templeton, and Fidelity looking to launch a spot Bitcoin ETF.
Digital asset manager Hashdex, which is also seeking approval for its spot BTC ETF filing, predicted that US investors could get access to such a product by the second quarter of 2024, followed by a spot Ether ETF.