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Standard Chartered Foresees SEC Approval of Ethereum ETFs, Predicts ETH Price Surge

Author

Jay Solano

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Tags Editor's Choice / Slider Posts

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2 mins
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Author

Jay Solano

Tags

Editor's Choice / Slider Posts

Reading time

2 mins
Last update

Author

Jay Solano

Tags

Editor's Choice, Slider Posts

Reading time

2 mins
Last update


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Standard Chartered’s Prediction on SEC’s Approval of Ethereum ETFs

Standard Chartered, a major banking institution, has projected that the U.S. Securities and Exchange Commission (SEC) will likely approve spot Ethereum exchange-traded funds (ETFs) by May. In a note published Tuesday, the bank’s head of crypto research and Western emerging markets FX, Geoff Kendrick, anticipates this approval based on the SEC’s previous approach to spot bitcoin ETFs. According to Kendrick, May 23 is the deadline for the SEC to decide on spot Ethereum ETF applications from Vaneck and Ark 21shares. He expects the SEC to follow a similar pattern as it did with the Jan. 10 approval of 11 spot bitcoin ETFs, considering Ethereum’s legal and financial parallels to bitcoin.

Ethereum’s Price Trajectory and Potential Post-Approval Scenario

Kendrick speculates that the price of Ethereum (ETH) could reach $4,000 by the expected approval date of May 23, drawing parallels with Bitcoin’s price movement during its ETF approval process. He bases his $4,000 ETH price target on several assumptions, including low market expectations for approval, incorrectly implied volatility, and the possibility of the SEC approving multiple spot Ethereum ETF applications simultaneously. However, despite SEC Chairman Gary Gensler’s evasiveness on Ethereum’s classification as a security, the SEC recently delayed decisions on two spot Ethereum ETF applications from Blackrock and Grayscale Investments.

Comparative Analysis of Ethereum and Bitcoin Post-ETF Approval

While Bitcoin experienced a post-approval selloff, notably after FTX exited the Grayscale Bitcoin Trust (GBTC), Standard Chartered anticipates that Ethereum will be less vulnerable to a similar selloff. This belief is based on Grayscale’s existing Ethereum Trust, which holds a smaller portion of the total ether market capitalization than Bitcoin in GBTC. According to Standard Chartered, this situation should make ETH more resilient to post-approval market fluctuations than BTC.

Earlier this month, Standard Chartered predicted that the Bitcoin price could reach $200K by 2025, indicating a bullish outlook for major cryptocurrencies in the long term.