Standard Chartered Bank Forecasts Bullish Rally for Ethereum
Standard Chartered Bank has predicted a positive surge in the value of Ethereum, especially if the first batch of US spot Ethereum ETFs gets approved by the SEC on May 23. This aligns with the timeline previously seen with Bitcoin ETFs.
SEC’s Strategy and Ethereum’s Market Prospects
The SEC’s approach to Ethereum ETFs is expected to follow a similar pattern as Bitcoin ETFs, starting with initial rejections before granting final approvals. Analysts believe that Ethereum’s price trajectory could reach as high as $4,000 if it follows a similar pattern to Bitcoin pre-ETF approval.
The SEC has not classified Ethereum as a security in its legal actions against crypto entities, and its regulated futures contract status on the Chicago Mercantile Exchange strengthens the case for ETF approval. Additionally, Grayscale’s Ethereum trust transitioning into an ETF adds to the anticipation for approval.
Resilience and Future Developments
Ethereum has shown more resilience compared to Bitcoin in its post-ETF approval phase. This is attributed to the relatively smaller market share of the Grayscale Ethereum Trust and low FTX holdings, which insulate Ethereum from similar post-approval volatility.
While basic Ethereum ETFs may be introduced on May 23, more complex ETFs with staking yield rewards are expected to come later. However, higher fees associated with these ETFs often offset the staking rewards.
Impact of Upcoming Ethereum Upgrades
The upcoming Dencun or Proto-Danksharding upgrade is expected to enhance Ethereum’s efficiency and competitiveness by reducing Layer 2 fees. Additionally, a deceleration in staking pace could sustain higher staking rewards for an extended period, further boosting Ethereum’s price.
Hot Take: Standard Chartered Bank Projects Bullish Rally for Ethereum
Standard Chartered Bank anticipates a major surge in Ethereum’s value if the first batch of US spot Ethereum ETFs gets approved by the SEC on May 23. Analysts believe that Ethereum could reach as high as $4,000, following a similar trajectory to Bitcoin before its ETF approval. The SEC’s classification of Ethereum as a regulated futures contract and Grayscale’s transition to an ETF add to the optimism. Ethereum has shown resilience in its post-ETF approval phase, and upcoming upgrades are expected to enhance its efficiency and competitiveness. Overall, the future looks promising for Ethereum’s market prospects.
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