The deadline for the approval of Invesco Galaxy’s Ethereum spot ETF by the US Securities and Exchange Commission (SEC) has been set for July 5, 2024. This comes after the SEC has previously postponed several spot Ether ETFs, including those proposed by Grayscale, Franklin Templeton, VanEck, and BlackRock.
On May 6, 2024, the SEC announced that it would be extending the deadline for the proposed rule change regarding the listing and trading of shares for Invesco Galaxy Ethereum ETF. The filing was made by Cboe BZX Exchange on October 20, 2023. The SEC stated that it needed more time to consider the proposed rule change and the issues raised, hence designating July 5, 2024, as the new deadline for the approval or disapproval of the ETF.
The SEC’s stance on Ethereum as a security has been a major hindrance to the approval of spot Ether ETFs in the US. The agency views Ethereum as a security asset based on the Howey test, which has led to resistance from industry players like Consensys. Consensys argues that Ethereum is a global computing platform and not an investment scheme, considering it a commodity like Bitcoin and Gold.
John Reed Stark, a senior law lecturer and former chief of Internet Enforcement at the SEC, testified before the US House of Representatives Financial Service Committee, stating that the SEC is following the law in protecting crypto investors from predatory behaviors.
While the approval of spot BTC ETFs in Hong Kong and the US has driven the demand for Bitcoin, Ethereum’s price action has been a topic of speculation. With the anticipated altcoin season, Ethereum’s price has rebounded about 3% in the past week and is aiming for a new all-time high if it can consistently close above $3,380. The daily 50 MA has been a strong resistance level in recent weeks.
In conclusion, the approval of Invesco Galaxy’s Ethereum spot ETF is facing a new deadline set by the SEC for July 5, 2024. The SEC’s stance on Ethereum as a security has led to resistance and legal battles, while Bitcoin continues to experience growing demand. Ethereum’s price action is closely watched as speculations rise.