SEC postpones verdict on Invesco and Galaxy’s Ethereum ETFs

Crypto News– The SEC once again delays decision on Invesco and Galaxy’s Ethereum ETF proposal amidst ETH price surge.

SEC postpones verdict on Invesco and Galaxy’s Ethereum ETFs

The proposed ETF aims to offer direct exposure to spot ETH for professional investors, addressing the current gap in the market. With Ether futures on CME being one of the limited options for regulated U.S. investors to bet on Ethereum’s growth, the delay prolongs the wait for such an investment vehicle.

Bloomberg’s ETF Analyst, James Seyffart, notes the delay was expected, anticipating more in the coming months. The crucial date to monitor is May 23rd, coinciding with VanEck’s final deadline. However, TD Cowen suggests a cautious approach due to potential political considerations, given SEC Chairman Gensler’s tenure until 2026.

The uncertainty around Ethereum’s regulatory status and recent legal developments with Ripple and XRP further complicate the decision-making process. Previous delays involving BlackRock’s ETH ETF and Grayscale’s ETHE conversion highlight the regulatory complexities surrounding Ethereum-related investment products.

International Interest in Ethereum Exchange-Traded Funds (ETFs)

Beyond the borders of the United States, there’s a burgeoning interest in spot Ethereum Exchange-Traded Funds (ETFs). Venture Smart Financial Holdings Ltd (VSFG), a major financial services firm based in Hong Kong, revealed its intentions to pursue a spot Ethereum ETF application in the first quarter of 2024, signaling a growing appetite for Ethereum investment opportunities in the Asian market.

Additionally, Harvest Fund, a Chinese asset management company, is also considering entering the Hong Kong market with its own spot Bitcoin ETF, indicating a broader trend of increasing acceptance of cryptocurrency investment products in the region.