The Securities and Exchange Commission has pushed back the timeline for a decision on whether to approve or disapprove the proposed Invesco Galaxy Ethereum ETF.

The agency previously delayed a decision on the fund in December and on Tuesday said it was “instituting proceedings.”

“Institution of proceedings is appropriate at this time in view of the legal and policy issues raised by the proposed rule change” the SEC said in a filing. 

The agency has pushed back deadlines for other spot Ethereum ETF proposals, including one from Grayscale Investments last month. On Tuesday, the agency asked similar questions it posed to Grayscale, including whether Ethereum’s proof-of-stake mechanism and “concentration of control or influence by a few individuals or entities” could bring up unique concerns to make the fund susceptible to fraud and manipulation. 

Comments are due for the Invesco Galaxy Ethereum ETF in 21 days, with a rebuttal period that lasts 35 days, the SEC said. 

Spot Ethereum ETFs

It’s been unclear if and when the agency will approve spot Ethereum ETFs. Investment Bank TD Cowen said one will likely be approved by late 2025 or early 2026, while others think the SEC could approve them by May 23. 

Other analysts are skeptical that the agency will approve spot Ethereum ETFs any time soon.

SEC Chair Gary Gensler has said the agency’s move last month to approve several spot bitcoin ETFs was just limited to just that cryptocurrency and “shouldn’t be read to be anything other than that.” 

Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.

© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.