Standard Chartered Bank Anticipates Ethereum ETF Approval by May 2024
The latest report from the Standard Chartered Bank predicts that there will be approval for a spot Ethereum exchange-traded fund in May 2024. The bank anticipates a 70% increase in Ethereum’s price, reaching $4000 by May once this ETF is approved.
Expected Approval By May
According to the research team at Standard Chartered, led by Geoff Kendrick, Ethereum’s approval is expected to follow a similar trajectory to Bitcoin’s approval. The U.S. Securities and Exchange Commission will likely delay making a decision initially, then eventually approve it. The tentative date for approval is May 23, but the bank acknowledges the need for more accurate market estimation of the likelihood of approval.
It is thought that if approval is granted on May 23, Ethereum could trade as high as $4,000 by then, following Bitcoin’s trajectory before its approval.
Contrary Views
However, not everyone shares this optimistic view. TD Cowen’s Washington Research Group has suggested that the approval of spot Ethereum ETFs is more likely to be delayed due to political pressure on the SEC Chair Gary Gensler. They predict approval in 2025-2026, especially given the upcoming U.S. elections.
Standard Chartered suggests that Ethereum’s prices might closely track or outperform Bitcoin as the approval date approaches. They also anticipate less selling pressure post-ETF approval compared to Bitcoin, due to differences in market share and capitalization.
Hot Take
The market anticipations reflect confidence that Ethereum ETFs will be approved despite different opinions on the actual approval date. Regardless of the timing, there is strong confidence that Ethereum ETFs will eventually be approved.
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