Ethereum ETF

The U.S. Securities and Exchange Commission (SEC) delayed its decision on Invesco Galaxy’s application for a spot Ethereum exchange-traded fund (ETF) by two months to July 5. The agency said it needed more time to review the application, especially because it involves Ethereum, which could be considered a security.

In a recent development, similar delays affected all eight firms vying to launch their own Ethereum ETFs, including BlackRock and Fidelity. The trend reflects the SEC’s cautious approach amid growing political scrutiny of SEC Chairman Gary Gensler.

Ethereum ETF Deadline

The SEC set a May 23 deadline for VanEck’s Ethereum ETF application, which Bloomberg ETF analyst James Seyffart labeled “the only deadline that matters.” In early March, Seyffart hinted at dwindling hopes for approval, and Bloomberg senior ETF analyst Eric Balchunas also lowered his optimism for SEC approval, from 50% to 35%.

Despite these setbacks, Ethereum advocate Anthony Sassano remains hopeful. Sassano pointed to the SEC’s previous approval of an Ether futures ETF and key meetings between the regulator, Grayscale, and Coinbase as potential indicators of an impending green light.

A more detailed analysis of analyst sentiment

ETF analysts remain consistent in their skepticism. Seft recently changed his stance from “cautiously optimistic” to a more resigned expectation that Ethereum ETF applications could face outright rejection by May 23.

The widespread skepticism stems from the SEC’s apparent “quiet response” to potential fund issuers and increasing political pressure on Gensler.

However, anticipation is high as market watchers focus on the upcoming decision. A positive outcome could spark significant movement within the cryptocurrency market, demonstrating the high risks involved.

What's the road ahead? As the cryptocurrency community waits with bated breath, the SEC's decision in the coming months could set the tone for Ethereum's regulatory and market landscape in the United States. With important applications still awaiting approval and key deadlines approaching, the outcome could signal the SEC's long-term stance on cryptocurrency ETFs. Stakeholders remain on edge, hoping for a decision that will pave the way for wider cryptocurrency acceptance and integration into mainstream financial services.