Ethereum ETF Approval: Standard Chartered’s Shift in Stance
Standard Chartered Bank, previously optimistic, has changed its stance on spot Ethereum exchange-traded funds, citing the U.S. Securities and Exchange Commission’s unlikely approval of such funds in May. Geoffrey Kendrick, head of Standard Chartered Bank’s forex and digital assets research, expressed the following:
- Expected SEC Ethereum ETF approval on May 23
- Based on the trajectory of BTC ETF approval
- Anticipated constructive dialogue with ETF applicants
SEC Delays
Earlier, the SEC delayed making a decision on spot Ethereum ETF proposals from Franklin Templeton and Grayscale, shifting the timeline for Franklin Templeton’s ETF to June 11 and Grayscale’s ETF to June 23. This delay signifies the regulator’s options of approving, disapproving, or instituting proceedings after the said dates.
The SEC also pushed back decisions on VanEck and BlackRock’s spot Ethereum ETFs, indicating a trend of delays in the approval process.
Fading Optimism
Many industry experts, including Bloomberg’s Eric Balchunas and Galaxy Digital’s Alex Thorn, echo Standard Chartered’s decreasing optimism in the approval of spot Ethereum ETFs in May.
- Balchunas lowered odds for May approval from 70% to 25%
- Thorn stated approval in May is “extremely unlikely”
Expects Eventual Approval
Despite the current outlook, Standard Chartered maintains optimism for eventual spot Ethereum ETF approval, aligning with JPMorgan’s views on the matter. The bank also upholds its year-end target price levels for bitcoin and ETH:
- Bitcoin: $150,000
- Ethereum: $8,000
Standard Chartered remains upbeat about the future of spot Ethereum ETFs, citing the gradual removal of negative drivers and bullish structural drivers for BTC.
Hot Take: Outlook on Ethereum ETF Approval
In conclusion,
Standard Chartered Bank has shifted its stance on approving spot Ethereum ETFs by the SEC, expressing doubts about approval in May. This change reflects broader industry sentiment, with experts predicting an unlikely approval scenario. However, despite the current skepticism, Standard Chartered maintains a positive outlook for eventual approval and continues to support optimistic price targets for bitcoin and Ethereum.
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