The U.S. Securities and Exchange Commission (SEC) has postponed a decision on the Spot Ethereum (ETH) exchange-traded fund (ETF) proposed by asset management companies Invesco (IVZ) and Galaxy Digital.
The proposed ETF would allow investors to track the spot price of Ethereum without actually owning the second-largest cryptocurrency by market capitalization.
Analysts were quick to say that the SEC’s delay was expected and that the Wall Street regulator would likely delay its decision on the Ethereum ETF several more times between now and late spring.
Wall Street is keeping an eye on May 23, when the SEC will make a final decision on whether to approve the Spot Ethereum ETF. Today is the application deadline for investment company VanEck’s Ethereum ETF.
Earlier this year, the SEC deferred a decision on Grayscale Investments’ application to convert its existing Ethereum Trust Product (ETHE) into an ETF.
Regulators previously delayed a decision on BlackRock’s (BLK) Spot Ethereum ETF application.
Analysts say the SEC is trying to give the market some breathing room after it approved more than a dozen Bitcoin (BTC) spot ETFs on January 10 of this year.
The same analysts expect Ethereum’s price to rise between now and May 23, when the SEC is widely expected to approve VanEck’s ETF application.
Ethereum price has been flat for the year, but has risen 42% in the past 12 months, trading at USD 2,370 per digital token.