Grayscale Gains Edge as Invesco Galaxy Misses Ethereum ETF Deadline

Key Insights:

  • Invesco Galaxy’s missed deadline may delay its Spot Ethereum ETF, affecting its competition with VanEck and Grayscale.
  • Grayscale’s Mini Ethereum Trust distribution on July 18 signals growth amid Invesco Galaxy’s potential setbacks.
  • Social media buzzes as Invesco Galaxy scrambles to comply while VanEck nears final approval for its Ether ETF.

Investment firm Invesco Galaxy still needs to meet the July 8 deadline to submit its amended S-1 form for a Spot Ethereum ETF application. This development occurred because other major industry players, including BlackRock, VanEck, Grayscale, Fidelity, and Franklin Templeton, successfully submitted their amendments to the United States Securities and Exchange Commission (SEC) on time.

Deadline Missed by Invesco Galaxy

Invesco Galaxy’s failure to meet the deadline has raised concerns regarding the impact on its application for a Spot Ethereum ETF. The SEC had previously requested these amendments after returning the initial S-1 registrations from Spot Ethereum ETF filers with “a few light comments.” Firms were expected to address these comments and resubmit their documents by the July 8 deadline.

Nate Geraci, President of ETF Store, noted the absence of Invesco Galaxy’s filing. He commented on X (formerly known as Twitter), 

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“Only amendment I didn’t see today was Invesco Galaxy eth ETF… Perhaps will post to SEC site in morning. Otherwise, all other issuers are in & now we wait on SEC.”

Concerns Over Potential Approval Delays

The delay by Invesco Galaxy could affect the entire approval process for their Spot Ethereum ETF. With other firms, such as VanEck and Bitwise, moving forward efficiently, this lapse could impact Invesco Galaxy’s competitive standing to launch a Spot Ethereum ETF.

VanEck, for example, has already filed its amended S-1 and aims to trade under the “ETHV” ticker. According to industry experts, VanEck is nearing a final approval date. The SEC had previously approved the 19b-4 filings of eight potential issuers in May, with the final S-1 application expected to be approved by summer. SEC Chairman Gary Gensler has pointed to this timeline as firms finalize their investment vehicles.

Furthermore, VanEck has also unveiled a competitive fee of 0.20% for its Ether ETF, which has led investors to anticipate low fees from all issuers. Meanwhile, Bitwise filed its S-1 amendment last week, including a 6-month waiver of up to $500 million. This proactive approach demonstrates the firm’s readiness to capitalize on the market’s growing interest in Ethereum ETFs.

Market Response and Speculation

The market has responded swiftly to these developments. Social media platforms are abuzz with speculation about the impact of Invesco Galaxy’s missed deadline on the broader Ethereum ETF approval timeline. Investors eagerly await updates from the SEC and potential adjustments in the fee structures of the anticipated ETFs.

Nate Geraci expressed optimism toward the anticipated Spot Ethereum ETF launch next week despite the missed deadline by Invesco Galaxy. He added, 

“Still think next week looks most likely for launch. Notable Grayscale set July 18 as creation date for Mini Trust.” 

Grayscale’s announcement of July 18, 2024, as the record date for the initial creation and distribution of shares of the Grayscale Ethereum Mini Trust (ETH Trust) has also added to the optimism.

Next Steps for Invesco Galaxy

The following steps for Invesco Galaxy will be crucial. Filing their amended S-1 as soon as possible is imperative to stay in the race. Failure to do so could result in lost opportunities and diminished investor confidence. The SEC’s thorough review process and Invesco Galaxy’s missed deadline may push back their approval timeline. This situation emphasizes the importance of timely compliance with regulatory requirements in the highly competitive and fast-evolving crypto investment landscape.

While other firms like VanEck and Bitwise are progressing efficiently, any delay could impact Invesco Galaxy’s competitive standing in the race to launch a Spot Ethereum ETF. Industry experts keenly observe how these developments will unfold in the coming weeks.

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Meanwhile, Grayscale Investments has made significant strides with the Mini Ethereum Trust distribution date. It announced July 18, 2024, as the record date for the initial creation and distribution of the Grayscale Ethereum Mini Trust (ETH Trust) shares. This move is expected to increase the value of existing Grayscale Ethereum Trust (ETHE) shareholders. Grayscale’s approach to expanding its crypto investment products portfolio could set a precedent for other firms in the industry.

Editorial credit: gopixa /