The week ended challenging for cryptocurrency investors following the interest rate decision by the Federal Reserve (Fed). Although the price of Bitcoin surged to $43,475, it failed to sustain this level. On the other hand, a new decision was made regarding the spot ETH ETF application proposed by Invesco and Galaxy Digital.
The United States Securities and Exchange Commission (SEC) has postponed its decision on the spot ETF application. In addition, an update was made to the BTC ETF application file by Invesco and Galaxy Digital. Such file updates are accepted as a result of ongoing communication with the SEC. The SEC created optimism in the market regarding approvals by conducting consultations with many potential ETF issuances this month.
In a notification dated December 13, the SEC announced that it has postponed its decision on the application that would allow Cboe BZX Exchange to list the Invesco Galaxy Ethereum ETF. Accordingly, the decision is expected to be made on February 6, 2024.
After BlackRock made a spot Bitcoin ETF application in June, Invesco and Galaxy Digital were encouraged to revitalize their own BTC ETF applications. They also applied for a spot ETH ETF in September.
A Bloomberg ETF analyst wrote about the update to the BTC ETF file; according to Invesco’s newly updated S-1 form, it only committed to creating with cash, which indicated that the SEC would initially allow ETFs to be created only with cash. Analysts say that the date when the SEC will give approval is expected to become clear around January 10th.