The race to launch the first SEC-approved Ethereum spot exchange-traded fund (ETF) continues to intensify. Asset management giant Invesco has partnered with Mike Novogratz’s Galaxy Digital to throw their hats in the ring.
The proposed Invesco Galaxy Ethereum ETF would hold Ether directly, with Galaxy acting as the execution agent. This marks the fourth Ethereum spot ETF application in recent weeks, following filings by Ark Invest/21Shares, VanEck, and Hashdex.
Industry participants believe a spot ETF is the next logical step after the impending launch of Ethereum futures ETFs. Multiple issuers like Valkyrie and VanEck received SEC approval this week to launch futures-based funds as soon as Monday.
While futures ETFs got a regulatory green light, spot crypto ETFs remain elusive for US investors. Invesco and Galaxy’s June application for a Bitcoin spot ETF was delayed twice alongside other issuers.
Pressure on the SEC is building after losing a lawsuit filed by Grayscale. A federal court deemed the agency’s rejection of Grayscale’s spot Bitcoin trust “arbitrary and capricious.”
The rapidly growing field of Ethereum spot ETF applicants hope this ruling gives their products a better shot. But the SEC continues stressing concerns around manipulation, custody, and liquidity.
With futures ETFs set to offer indirect exposure, the marketplace eagerly awaits the SEC’s response to mounting spot ETF applications. The regulatory scrutiny remains high despite growing industry frustration.
#Ethereum #ETF #GalaxyDigital #Invesco #Cryptocurrency #SEC
