Invesco and Galaxy’s Sequential ETF Pursuits
Before seeking approval for the Invesco Galaxy Ethereum ETF, Invesco and Galaxy had made an earlier attempt to secure approval for a spot Bitcoin ETF, which was reactivated in June.
The main objective of the proposed Invesco Galaxy Ethereum ETF is to offer investors an opportunity to gain exposure to Ethereum, a leading cryptocurrency in the market. However, it’s noteworthy that the SEC has not yet approved any ETFs with direct exposure to cryptocurrencies like Bitcoin or Ethereum.
Reason Behind the SEC’s Decision Delay
Initially, the SEC was supposed to make a decision on the Invesco Galaxy Ethereum ETF by December 23, 2023. However, the SEC chose to extend the evaluation period, citing the need for further assessment.
Within the cryptocurrency industry, the approval of a spot ETF has been eagerly anticipated. Various firms, including BlackRock, Hashdex, ARK 21Shares, VanEck, and Fidelity, have submitted applications for similar products.
Over the past month, the SEC has been engaging in discussions with representatives from different asset management firms to explore the potential surrounding ETF offerings tied to cryptocurrencies.
Market Reactions and Implications
When the announcement was made, Ethereum (ETH) was priced at $2,280. The market has been closely monitoring the progress of the ETF, as its approval would likely attract increased institutional investment in Ethereum.
Bitcoin (BTC), another major cryptocurrency, had a price of $42,849 when the SEC’s decision delay was revealed. Although Bitcoin continues to dominate the crypto market, the approval of Ethereum-based ETFs could signal broader acceptance of cryptocurrencies within traditional financial markets.