The U.S. Securities and Exchange Commission has decided to delay its ruling on the Invesco Galaxy Ethereum ETF proposal, as revealed in a recent filing. This means the SEC will take an additional 60 days to review and decide on the ETF proposal.

In the previous month, the SEC also deferred its decision on Ethereum ETF proposals from Franklin Templeton and Grayscale. Reports from Reuters, citing sources within the industry, suggest that the SEC is likely to reject ETF proposals from VanEck and ARK later this month.

Experts in the field had anticipated the SEC's rejection of these ETFs due to a perceived lack of involvement, a contrast to the situation preceding the approval of Bitcoin ETFs. Analysts believe that the rejection of spot Ethereum ETFs may be due to technical reasons, with industry figure Matt Hougan of Bitwise predicting that the SEC may request more data before approval.

It is important to highlight that the SEC is currently engaged in a legal dispute with Consensys, a prominent supporter of Ethereum. In April, Consensys challenged the SEC's classification of Ethereum as a security, claiming it was incorrect.

Despite these challenges, BlackRock CEO Larry Fink remains optimistic about the possibility of launching a spot Ethereum ETF, even if the underlying asset is considered an unregistered security. The SEC's approval process for spot Bitcoin ETFs earlier this year took over a decade, resulting in their eventual success. However, it appears that the SEC is not yet prepared to greenlight Ethereum ETFs.