Standard Chartered Anticipates SEC Approval for Ethereum ETF in May
Standard Chartered, an international cross-border bank, predicts that the US Securities and Exchange Commission (SEC) will approve a spot Ethereum (ETH) exchange-traded fund (ETF) in May. This comes after the regulator recently approved 11 spot Bitcoin ETFs. Standard Chartered believes that the SEC will rule on the applications of asset managers VanEck and Ark 21Shares on May 23rd, similar to its decision on Bitcoin ETFs. Geoff Kendrick, the head of digital assets research at Standard Chartered, states that Ethereum and Bitcoin have similar legal and financial characteristics, increasing the likelihood of approval for the spot Ethereum ETF. Kendrick also suggests that if Ethereum follows Bitcoin’s trading pattern during the approval process, its price may rise to $4,000 by May 23rd.
Ethereum Expected to Avoid Post-Approval Selloffs
Standard Chartered expects that Ethereum will not experience significant selloffs following the ETF approval, unlike Bitcoin. This is because Grayscale’s Ethereum trust holds only a small percentage of ETH’s total market cap compared to Grayscale Bitcoin Trust (GBTC) holdings. Geoff Kendrick explains that these factors make ETH less vulnerable than BTC to post-approval selloffs. Currently, ETH is trading at $2,283.
Hot Take: SEC Approval Could Boost Ethereum Price in May
International cross-border bank Standard Chartered predicts that the US SEC will approve a spot Ethereum ETF in May, following its recent approval of Bitcoin ETFs. The bank believes that Ethereum and Bitcoin share key legal and financial similarities, making it likely for the spot Ethereum ETF to receive approval. If Ethereum follows Bitcoin’s trading pattern during the approval process, its price could reach $4,000 by May 23rd. Additionally, Standard Chartered expects Ethereum to avoid significant selloffs after the approval, as Grayscale’s Ethereum trust holds only a small portion of ETH’s market cap compared to Bitcoin’s holdings.
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