The wait for a spot Ether ETF in the US continues. The Securities and Exchange Commission (SEC) has postponed its decision on Invesco Galaxy's application, pushing the deadline back to July 5th, 2024. This follows a similar pattern for eight other hopeful Ether ETF issuers, including VanEck.

What's a Spot Ether ETF?

A spot ETF (Exchange Traded Fund) tracks the underlying price of an asset, in this case, Ether (ETH), the cryptocurrency powering the Ethereum blockchain. Investors can buy and sell shares of the ETF on a stock exchange, gaining exposure to Ether's price movements without directly owning the cryptocurrency itself.

Why the Delay?

The SEC hasn't explicitly stated its reasons for delaying the decision. However, analysts speculate that concerns over market manipulation and potential fraud within the cryptocurrency space might be a contributing factor. This isn juxtaposes the recent approval of several Bitcoin ETFs, which some analysts find puzzling.

Skepticism Grows

The delays have fueled skepticism among analysts regarding the near-term approval of any Ether ETF. Some, like Bloomberg ETF analyst Eric Balchunas, have revised their approval chances downward, citing the extended silence from the SEC and the ongoing regulatory pressures faced by SEC Chair Gary Gensler.

What Now?

The wait continues for investors hoping for an easy way to gain exposure to Ether. All eyes are now on July 5th to see if the SEC gives Invesco Galaxy (and potentially others) the green light for their Ether ETF proposals. In the meantime, the regulatory landscape surrounding cryptocurrency in the US remains somewhat murky.