Spot Ethereum ETFs Could Still Be Approved by May 23, Says Standard Chartered Bank
Standard Chartered Bank believes that spot Ethereum exchange-traded funds (ETFs) could still be approved by their initial deadline of May 23. Geoffrey Kendrick, head of forex and crypto research at the bank, stated that while this view is now non-consensus, he estimates that $15-45 billion of inflows could come in the first 12 months if the ETFs are approved. This estimate is based on the same logic applied to BTC ETF inflows. Kendrick previously predicted the approval of spot Ethereum ETFs on May 23 due to the SEC not classifying ETH as a security. The recent announcement by the London Stock Exchange accepting applications for exchange-traded notes backed by BTC and ETH further increases the likelihood of ETH ETF approval.
Ether Price Predictions
If spot Ethereum ETFs are approved in May, Kendrick believes that the price of ETH could reach $8,000 sooner than expected. He now anticipates the price hitting $8,000 by the end of 2024, two years earlier than his previous prediction. Kendrick has also set an ETH price target of $14,000 by the end of 2025. He predicts that ETH would keep pace with BTC, with a current price ratio of 5.4%, holding for the rest of 2024. Standard Chartered sees BTC reaching $150,000 by the end of 2024 and an ETH-to-BTC price ratio rising back to the 7% level in 2025.
Ethereum’s Dencun Upgrade
Kendrick believes that Ethereum’s recent Dencun upgrade, which lowers transaction fees on Layer 2 networks, makes Ethereum more competitive. He expects the “bridge” category to increase in importance and envisions Ethereum’s use cases evolving towards gaming and tokenization. Kendrick predicts significant developments in these areas by 2025-26, with real-world industries coming on-chain to exploit the benefits of Ethereum over their existing setups.
Hot Take: Spot Ethereum ETF Approval Could Drive Inflows and Price Growth
Standard Chartered Bank maintains optimism regarding the approval of spot Ethereum ETFs by May 23. Despite skepticism from other commentators, the bank believes that approval is still possible. If approved, it estimates significant inflows of $15-45 billion in the first 12 months, leading to potential price growth for ETH. Kendrick predicts that the price of ETH could reach $8,000 by the end of 2024 and $14,000 by the end of 2025. The recent London Stock Exchange announcement regarding BTC and ETH exchange-traded notes further supports the likelihood of ETH ETF approval.
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