Standard Chartered Predicts Spot Ethereum ETF Approval and $4000 Price
Standard Chartered believes that the Securities and Exchange Commission (SEC) could approve a spot Ethereum ETF by May 23. The bank predicts that the SEC will follow a similar strategy to the one used for spot Bitcoin ETFs, with initial rejections followed by eventual approval. Standard Chartered’s head of forex and digital assets research, Geoffrey Kendrick, expects ETH to reach $4000 if it performs similarly to Bitcoin prior to ETF approval. Kendrick notes that the SEC has not classified ETH as a security in legal actions and highlights the listing of ETH as a regulated futures contract on the Chicago Mercantile Exchange as additional support for a spot Ethereum ETF. Kendrick also expresses optimism about the price of ETH, suggesting that it could surge following approval.
Optimistic Outlook on Crypto Prices
Kendrick holds an optimistic outlook on cryptocurrency prices, predicting that the approval of spot Bitcoin ETFs could result in inflows of $50-100 billion and drive the price of Bitcoin to $100,000 by the end of 2024 and $200,000 by the end of 2025. He anticipates similar gains for Bitcoin following ETF approval but over a shorter period. Kendrick believes that the price of ETH will remain relatively stable after approval, as Grayscale’s Ethereum Trust is smaller compared to its Bitcoin Trust. He also highlights the positive impact that the upcoming Ethereum upgrade could have on ETH’s price.
Hot Take: Prospects for Spot Ethereum ETF Approval
Standard Chartered Bank predicts that the SEC will approve a spot Ethereum ETF by May 23, following a similar approach to spot Bitcoin ETFs. This approval could potentially lead to a surge in the price of ETH, with the bank projecting a target of $4000. The SEC’s previous treatment of ETH as a non-security and the listing of ETH as a regulated futures contract on the Chicago Mercantile Exchange support the case for approval. Overall, Standard Chartered expresses optimism about both the approval and the potential price gains that could result from increased ETF adoption.
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