The United States 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 several other spot Ether ETFs, including those from Grayscale, Franklin Templeton, VanEck, and BlackRock, have also been delayed by the SEC.
Invesco Galaxy’s Ethereum ETF was filed by Cboe BZX Exchange on October 20, 2023. The SEC has decided to extend the deadline in order to have enough time to thoroughly review the proposed rule change and the associated issues.
The SEC’s stance on Ethereum as a security has been a major obstacle to the approval of spot Ether ETFs in the US. It is likely that the SEC will deny the approval of these ETFs later this month. The agency has argued that Ethereum meets the criteria of a security asset under the Howey test, but this has been contested by Consensys, who believes Ethereum should be classified as a commodity.
According to John Reed Stark, a senior law lecturer and former chief of Internet Enforcement at the SEC, the agency is committed to protecting crypto investors from predatory behaviors, which is why they are cautious in approving ETFs.
Meanwhile, the demand for Bitcoin has been steadily increasing, especially after the approval of spot BTC ETFs in Hong Kong and the US. Grayscale’s GBTC has seen its first cash inflow since the approval, signaling renewed investor interest in Bitcoin. Analysts predict that Bitcoin will reach a new all-time high in the coming weeks, especially with the upcoming Bitcoin halving and potential interest rate cuts by the US Federal Reserve.
The anticipation of an altcoin season has also led to speculation on Ethereum’s price action. With a market capitalization of around $368 billion and a total value locked of over $55 billion, Ethereum has seen a 3% increase 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 in the near future. However, the daily 50 MA has been serving as a strong resistance level in recent weeks.
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