SEC’s Critical Ethereum ETF Decision Delayed Until July — What’s Next?

YEREVAN (CoinChapter.com) — On May 6, the U.S. Securities and Exchange Commission (SEC) delayed its decision on Invesco Galaxy’s spot Ether ETF application by two months to July 5. The agency said that it needs more time to examine the application, especially because of the involvement of Ethereum, which it may deem security.

In recent developments, similar postponements have affected all eight firms vying to launch their own Ethereum ETFs, including heavyweights like BlackRock and Fidelity. This trend reflects the SEC’s cautious approach amidst increasing political scrutiny directed at SEC Chair Gary Gensler.

Ethereum ETF Deadline

The SEC has set May 23 as the ultimate deadline for VanEck’s Ethereum ETF application, a date that Bloomberg ETF analyst James Seyffart marks as “the only deadline that matters.” Early in March, Seyffart hinted at a dwindling hope for approval, a sentiment later echoed by Senior Bloomberg ETF analyst Eric Balchunas, who adjusted his optimism regarding the SEC’s approval from 50% down to 35%.

Despite these setbacks, Ethereum advocate Anthony Sassano remains hopeful. Sassano points to the SEC’s prior approval of Ether futures ETFs and significant meetings between the regulator, Grayscale, and Coinbase as potential indicators of a forthcoming green light.

A Closer Look at the Analysts’ Take

ETF analysts seem united in their skepticism. Seyffart recently changed his stance from “cautiously optimistic” to a more resigned expectation that the Ether ETF applications might face outright rejection by May 23.

This collective skepticism stems from the SEC’s noticeable “radio silence” toward prospective fund issuers and increasing political pressure on Gensler.

However, the anticipation builds as market watchers eye the forthcoming decisions. A positive outcome could potentially catalyze significant movements within the cryptocurrency markets, demonstrating the high stakes involved.

What Lies Ahead? As the cryptocurrency community holds its breath, the SEC’s decisions in the coming months could define the regulatory and market landscape for Ethereum in the United States. With major applications pending and critical deadlines approaching, the outcomes could signal the SEC’s long-term stance on cryptocurrency ETFs. Stakeholders remain on edge, hoping for a decision that could pave the way for broader acceptance and integration of cryptocurrency into mainstream financial services.