The US Securities and Exchange Commission May Approve Ethereum ETFs in May
According to Standard Chartered Plc., the US Securities and Exchange Commission (SEC) is likely to allow exchange-traded funds (ETFs) to hold the cryptocurrency Ethereum in May. The bank predicts that on May 23, the SEC must consider ETF applications from VanEck and Ark 21Shares, making them the first asset managers to face the final deadline.
Similarities Between Ethereum and Bitcoin
Standard Chartered expects the SEC to rule on the applications on the final date, similar to its approval of 10 Bitcoin ETFs on January 10. Geoff Kendrick, head of FX Research, West, and Digital Assets Research at Standard Chartered, believes that Ethereum has key similarities to Bitcoin’s legal and financial status, indicating a similar approval pattern.
Ethereum’s Exclusion from SEC List and Market Value
Last June, the SEC did not include Bitcoin and Ether in its list of 67 tokens considered as securities. Additionally, Ether, like Bitcoin, has futures traded on the Chicago Mercantile Exchange. With a market value of approximately $285 billion, Ether is currently the second-largest cryptocurrency after Bitcoin.
Price Prediction and Post-Approval Selloffs
Kendrick predicts that if Ether follows a similar trading pattern to Bitcoin during the ETF approval process, its price could rise to $4,000 by the projected May 23 approval date. However, this prediction is contingent upon various assumptions being true. Standard Chartered believes that Ether will be less vulnerable to post-approval selloffs compared to Bitcoin due to factors such as its lower market capitalization held in trusts.
Hot Take: Ethereum ETF Approval Expected in May
Standard Chartered Plc. predicts that the US Securities and Exchange Commission will approve Ethereum ETFs in May. This could have a significant impact on the price of Ether, potentially rising to $4,000 by the approval date. Unlike Bitcoin, Ether is expected to avoid major selloffs post-approval. However, these predictions are based on certain assumptions and market conditions.
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