The U.S. Securities and Exchange Commission has decided to postpone its ruling on the approval of the Invesco Galaxy Ethereum ETF to July 5, 2024. This decision has generated significant interest within the investment community and financial analysts.

The SEC recently filed a document on May 6, 2024, stating the necessity for more time to assess the Invesco Galaxy Ethereum ETF proposal put forth by Cboe BZX Exchange. Consequently, the review period has been extended until July 5, 2024, to thoroughly evaluate the potential implications of introducing the Ethereum ETF into the market.

The SEC emphasized the need for this extension to have ample time to carefully consider the proposed rule change and the associated concerns. The initial request for Ethereum ETFs was submitted on October 20, 2023, by Cboe BZX Exchange, with the proposal opened for public comment on November 8, 2023.

Following standard procedure, the SEC has already extended its review timeline in February 2024 and has now decided to further postpone its final decision until July of the same year.

It is uncertain whether a definitive decision will be reached in July, as there is a possibility of the SEC rejecting the proposal, followed by potential appeals from entities like Galaxy or BlackRock. The process could lead to an extensive legal procedure.

Despite the SEC's decision to extend the review period, many market experts believe that there are underlying reasons for delaying the approval of Spot Ethereum ETFs, such as SEC Chair Gensler's stringent stance on cryptocurrencies and the ongoing investigation into Ethereum or 'ETHGate'.

Michael Saylor, CEO of MicroStrategy and a well-known Bitcoin supporter, has also expressed his opinion that the SEC might reject Spot Ethereum ETFs.

On July 5, 2024, the outcome of this decision will be eagerly awaited by the market participants for its potential impact.