Bitcoin
SEC Postpones Spot Ethereum ETFs Amid Rising Interest in Bitcoin
- The US SEC has set the next deadline for the Invesco Galaxy Ethereum spot ETF on July 5, 2024.
- The US SEC has deferred several spot Ether ETFs in the recent past, including Grayscale, Franklin Templeton, VanEck, and BlackRock.
On Monday, May 6, 2024, the United States Securities and Exchange Commission (SEC) announced its intention to postpone the deadline for approving or disapproving the proposed change to the rules for listing and trading shares of the Invesco Galaxy Ethereum ETF. Notably, Cboe BZX Exchange filed with the US SEC on October 20, 2023, to list the Invesco Galaxy Ethereum ETF.
“The Commission finds it appropriate to designate a longer period for issuing an order approving or disapproving the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised therein. Accordingly, the Commission designates July 5, 2024, as the date by which the Commission will approve or disapprove the proposed rule change,” the agency observed.
US SEC sees Ethereum as a security
As Crypto News Flash previously pointed out, the approval of spot Ether ETFs in the United States is in limbo as the SEC continues to maintain the position that Ethereum is a security. From a simple point of view, the US SEC will likely deny approval of spot Ether ETFs later this month.
Furthermore, the US SEC continued to argue that Ethereum is a security asset under the Howey test. The agency encountered immense resistance led by Consensys, which recently filed a lawsuit and argued that Ethereum is a global computing platform and not an investment scheme. Consequently, Consensys believes that Ethereum is a commodity just like Bitcoin and gold.
According to John Reed Stark – senior law professor and former head of Internet enforcement at the SEC – during Tuesday’s written testimony before the U.S. House of Representatives Committee on Financial Services, the U.S. SEC is following the law in protecting crypto investors from predatory behavior.
Unwavering Bitcoin Demand
Demand for Bitcoin (BTC) has continued to grow immensely in the recent past following the approval of spot BTC ETFs in Hong Kong and the United States. How Crypto News Flash observedGrayscale’s GBTC recently recorded its first cash inflow since approval, thus ending its losing streak.
With Bitcoin’s fourth halving already being felt amid rising demand, crypto analysts are confident that the top currency will reach a new ATH in the coming weeks. Furthermore, the US Federal Reserve is expected to reduce the benchmark interest rate later this year.
Direct impact on ETH price action
Speculation about Ethereum’s price action has increased amid the anticipated altcoin season. The large-cap altcoin, with a fully diluted valuation of around $368 billion and a total locked value of over $55 billion, recovered around 3% last week, trading around $3,070 on Monday -fair.
From a technical perspective, Ethereum price is targeting an ATH in the coming weeks if it manages to consistently close above $3,380. Furthermore, the daily 50 MA has acted as a strong resistance level in recent weeks.