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Ethereum Price Dips as SEC Postpones Invesco Galaxy ETF Decision

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Ethereum Price Dips as SEC Postpones Invesco Galaxy ETF Decision

  • The SEC has pushed back the decision deadline for the Invesco Galaxy Ethereum ETF to July 5, 2024.
  • ETH price drops by 6% to $3,027 after SEC’s ETF delay, highlighting market uncertainty.

The US Securities and Exchange Commission (SEC) has announced a further delay in its decision-making process regarding the proposed Invesco Galaxy Ethereum exchange-traded fund (ETF). In a recent filing, the SEC extended the deadline for its decision to July 5, 2024, citing the need for additional time to evaluate the proposal and the associated concerns thoroughly. 

Following the announcement, the price of ETH declined around 6% from its yesterday’s peak of $3,220 to $3,027.

The SEC’s response to the delay in the Invesco Galaxy Ethereum ETF (Source: SEC)

This latest delay adds to the ongoing uncertainty surrounding the approval of Ethereum ETFs, with the SEC having postponed decisions on similar proposals from other major financial institutions in recent weeks. Among those affected are Grayscale, Franklin Templeton, VanEck, and BlackRock, all awaiting regulatory clarity from the SEC.

Ethereum (ETH) Stays Above $3K

The market response to the news has seen Ethereum (ETH) facing slight downward pressure, particularly among short-term traders. Despite briefly surpassing the critical resistance level of $3,220, Ethereum has experienced a decline of approximately 4% in its value today. 

Additionally, amidst the volatility, long traders have faced significant liquidations totaling $67.42 million over the same period. This trend suggests a prevailing cautious sentiment among investors, likely influenced by uncertainties surrounding the regulatory landscape and recent developments such as Robinhood Crypto receiving a Wells notice from the SEC.

Further, the market remains attentive to further updates from regulatory authorities and their impact on Ethereum’s price. At the time of writing, Ethereum traded at $3059. Further, trading volume for ETH has surged by over 66% in the past 24 hours, reaching $13.78 billion.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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