The US Securities and Exchange Commission (SEC) has once again extended its timeline for making a decision on a proposed Ethereum (ETH) exchange-traded fund (ETF).
As a collaborative effort between Invesco and Galaxy Digital, the ETF is poised to offer direct exposure to Ethereum.
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In the notice, the SEC emphasized its need for additional time to thoroughly consider the proposed rule change, which, if approved, would permit the Cboe BZX Exchange to facilitate the listing and trading of the Invesco Galaxy Ethereum ETF shares.
The SEC's decision to extend this period underlines the complexity and novelty of integrating cryptocurrencies like Ethereum into mainstream financial products such as ETFs.
This extension marks a significant delay, pushing the decision beyond the initial 45-day period that was set to conclude on December 23, 2023. As the notice states:
The Commission <...> 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.
Invesco and Galaxy Digital initially submitted their application for the spot ETH ETF in September, following a reactivation of their application for a spot Bitcoin ETF earlier in June.
With the new deadline set for early 2024, the cryptocurrency community and potential investors are keenly awaiting what could be a historic decision in the realm of digital assets.
The approval of the Invesco Galaxy Ethereum ETF would surely be a landmark in the cryptocurrency space, as the SEC has not yet greenlit any ETFs that offer direct exposure to Bitcoin (BTC) or other cryptocurrencies.
Overall, the proposed ETF is part of a broader trend, with multiple firms, including Fidelity, BlackRock, VanEck, Hashdex, and ARK 21Shares, also having filed applications for spot crypto ETFs.
