The US Securities and Exchange Commission (SEC) has announced that the deadline for approving or disapproving Invesco Galaxy’s Ethereum spot ETF has been postponed to July 5, 2024. This comes after the SEC has already delayed several spot Ether ETFs for Grayscale, Franklin Templeton, VanEck, and BlackRock.
On May 6, 2024, the SEC stated its intention to extend the deadline for Invesco Galaxy’s Ethereum ETF. The proposal was filed by Cboe BZX Exchange on October 20, 2023. The SEC believes that it requires more time to review the proposal and the issues raised. Therefore, July 5, 2024, has been designated as the new deadline for the SEC’s decision.
The SEC’s stance on Ethereum as a security has caused uncertainty regarding the approval of spot Ether ETFs in the US. It is likely that the SEC will deny the approval later this month. The agency argues that Ethereum is a security asset based on the Howey test, but Consensys, a leading blockchain company, has filed a lawsuit claiming that Ethereum is a global computing platform and not an investment scheme. Consensys believes that Ethereum should be considered 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.
The demand for Bitcoin has continued to grow, especially after the approval of spot BTC ETFs in Hong Kong and the US. Grayscale’s GBTC has seen an inflow of cash after a long losing streak. Analysts are confident that Bitcoin will reach a new all-time high in the coming weeks, especially with the impact of the fourth Bitcoin halving and the expected interest rate cuts by the US Federal Reserve.
The speculation surrounding Ethereum’s price has increased as the altcoin season approaches. With Ethereum’s market cap of $368 billion and a total value locked of over $55 billion, the price has rebounded around 3 percent in the past week, trading at around $3,070 on Monday. If Ethereum manages to consistently close above $3,380, it is expected to reach a new all-time high. The daily 50 MA has been a strong resistance level in recent weeks.
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