Despite an imminent government shutdown and SEC delays, Galaxy and Invesco included their names in the Ethereum spot ETF on Friday.
Invesco, an asset management behemoth, has partnered with Galaxy Digital chief executive Mike Novogratz to file for an Ether (ETH) spot exchange-traded fund (ETF).
This comes after their combined application for a similar Bitcoin (BTC) product in June.
Invesco Partners with Galaxy Digital to File for Ether ETF
A publication on Invesco dubbed S-1 registration report, the Invesco Galaxy Ethereum ETF will ‘review Ether’s spot price performance’ by holding the cryptocurrency’s units with a different guardian, whose identity is unknown.
Invesco is the sponsor, while Galaxy Digital is the implementation agent.’ This will result in the sale of ETH to pay the Trust’s expenditures.
This is the fourth ETH spot ETF application to get to the Securities and Exchange Commission’s (SEC’s) mailbox in recent weeks and comes after earlier equivalent filings from VanEck,Invesco, 21 Shares, and Hashdex.
The industry believes that since an Ethereum future product will likely be launched next week, a spot exchange-traded fund is the next reasonable breakthrough for crypto investments in the United States. Despite Valkyrie’s and VanEck’s approval this week, James Seyffart, an ETF analyst, affirmed that Bitwise, Volatility Shares, ProShares, and Hashdex could participate in the launching as early as October 2.
SEC Delays Approval Ethereum ETF
Despite Valkyrie saying its Ethereum ETF would begin trading on Friday, it encountered challenges with the Securities and Exchange Commission (SEC) for buying Ether futures contracts before the news release. Since then, it has agreed to ease its present position in ETH futures and will rebuy contracts after the fund becomes available next week.
Despite regulators’ approval of futures exchange-traded funds, spot crypto ETFs are still
unreachable for United States investors. Since their application in June, the SEC has delayed Galaxy’s and Invesco’s spot ETF application twice. Bitwise, BlackRock’s, and Valkyrie’s applications have also encountered delays.
SEC is currently under pressure following the loss of a lawsuit to Grayscale. In this case, the federal court indicated that based on the agency’s affinity to approve futures ETFs, its constant denial of the firm’s spot ETF product was ‘illogical and impulsive.’
On Monday, Bitwise filed an adjustment to its EFT application to consider future rejections by the Securities and Exchange Commission against equivalent products despite its court loss. The securities watchdog is set to confront a busy period reviewing the applications seeking derivatives of Ethereum. Unlike the delay faced in the pending applications for spot bitcoin ETF, the ethereum ETF would witness an expedited approval process.