SEC Delays Decision on Another Major Ethereum ETF Proposal

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By BitcoinWiki News

Key Takeaways:

  • SEC has extended the decision period for Invesco and Galaxy’s spot Ethereum ETF
  • This extension pertains to a proposed rule change from Cboe BZX
  • SEC has requested comments on concerns related to fraud prevention, market manipulation, and investor protections
  • Exact deadlines were not provided by the SEC
  • May 23rd is a significant date for VanEck’s final deadline for its proposal
  • The SEC is anticipated to decide on multiple similar proposals simultaneously
  • Over the past weeks, the SEC has postponed various other spot Ethereum ETFs
  • Prediction markets suggest a 43% chance of approval for spot Bitcoin ETFs by May

Title: SEC Delays Decision on Invesco and Galaxy’s Ethereum ETF

Introduction:
The U.S. Securities and Exchange Commission (SEC) has extended the decision period for Invesco and Galaxy’s spot Ethereum ETF, as expected by analysts. This extension pertains to a proposed rule change from Cboe BZX that would enable the listing and trading of shares of the fund.

Decision Process:
The SEC has chosen to institute proceedings for approval or disapproval of the proposed rule change. The agency has requested commenters to address concerns related to fraud prevention, market manipulation, and investor protections, issues that were pivotal in the approval of spot Bitcoin ETFs in January. Exact deadlines were not provided by the SEC, but comments should be submitted within 21 days of publication in the Federal Register, with rebuttal comments due within 35 days of publication.

Impact on Timeline:
The extension affects the timeline for Invesco and Galaxy’s ETF proposal, but it does not impact the broader approval timelines for Ethereum ETFs. The SEC is anticipated to decide on multiple similar proposals simultaneously, potentially including those with deadlines beyond VanEck’s proposal.

May Remains Key Time Frame:
May 23rd is highlighted as a significant date, which marks VanEck’s final deadline for its proposal. The SEC has postponed various other spot Ethereum ETFs over the past weeks, but these delays do not alter the broader decision deadline set for May.

Uncertain Approval Likelihood:
The likelihood of the SEC approving a spot Ethereum ETF remains uncertain, with predictions ranging from a 43% chance of approval by May to a 60% chance. The SEC’s decision will have a significant impact on the future of Ethereum ETFs.

Conclusion:
The SEC’s decision to extend the decision period for Invesco and Galaxy’s spot Ethereum ETF, along with the ongoing delays for other similar proposals, highlights the uncertainty surrounding the approval of Ethereum ETFs. The final decision, which is expected to be made by May, will be crucial for investors and the future of Ethereum ETFs.

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