SEC Delays Decision on Staking in Invesco Galaxy Ethereum ETF

• SEC postpones decision on Ethereum ETF staking
• Invesco Galaxy Ethereum ETF May Include Staking
• Investors await SEC approval for staking

The U.S. Securities and Exchange Commission (SEC) has once again postponed its decision on the application seeking to include staking functionality in the Invesco Galaxy Ethereum ETF.

The request, initially submitted by Cboe BZX Exchange on June 9, was modified on June 23. The updated version of the proposal was published in the Federal Register on June 27. As a result, the original August 11 deadline for responding was extended to September 25.

According to the SEC document published on July 30, the extension is necessary to give the regulator more time to assess the impact of adding staking to the Ethereum spot ETF framework. The agency justified the decision by stating that "additional considerations are appropriate in analyzing the proposed rule change."

The proposal aims to allow Invesco's Galaxy ETF, which is already under review along with other Ethereum-based funds, to add a staking component, which could have significant implications for institutional investors and the cryptocurrency market as a whole.

This move follows a series of regulatory updates involving the possible introduction of staking in Ethereum-based ETFs. Anticipation for the approval of such changes has been growing since the SEC signaled that it could loosen its treatment of crypto-linked financial products, especially after the recent approval of Ethereum spot ETFs.

The SEC's extension of the review keeps the market alert to future developments, as a positive decision could pave the way for other issuers to integrate staking into their funds. Meanwhile, asset managers continue to adjust their requests to the agency, seeking to position themselves competitively in this growing segment.