The Securities and Exchange Commission has announced a delay in the timeline for making a decision on the proposed Invesco Galaxy Ethereum ETF, which has been met with both approval and disapproval.
This follows a previous delay in December of last year. In their statement, the agency stated that they are “instituting proceedings,” noting the legal and policy concerns surrounding the proposed rule change.
This is not the first time the SEC has pushed back deadlines for spot Ethereum ETF proposals, with a recent delay on a proposal from Grayscale Investments last month.
Similar to their questions for Grayscale, the agency asked about potential concerns such as the proof-of-stake mechanism and the concentration of control by a few individuals or entities, which could make the fund vulnerable to fraud and manipulation.
The public has 21 days to submit comments on the Invesco Galaxy Ethereum ETF, with a 35-day rebuttal period, according to the SEC.
