Investors Anticipate Delay in Ethereum ETF Approval, But Remain Bullish π
Investors seeking exposure to Ethereum through ETFs may need to wait longer than expected for approval. Standard Chartered, the investment bank, has revised its timeline for the approval of spot Ether ETFs in the U.S., originally anticipated in May. Despite this delay, the bank remains optimistic about the future of the cryptocurrency market.
Challenges Impacting the Digital Asset Market π
- Standard Chartered analyst Geoff Kendrick had previously forecasted a launch for spot Ether ETFs on May 23.
- Identified challenges in the market include the SEC’s lawsuit against Uniswap, rising U.S. Treasury yields, delayed Fed rate cuts, and geopolitical tensions in the Middle East.
- These factors have led to moderated expectations regarding Ethereum’s integration into mainstream financial products.
Outlook for Bitcoin and Ethereum π°
- The recent market downturn is seen as a temporary setback by Standard Chartered.
- According to the bank, positive structural drivers are expected to drive BTC and ETH prices higher.
- Standard Chartered maintains its bullish stance, with year-end price targets of $150,000 for Bitcoin and $8,000 for Ethereum.
- Additionally, ETH is projected to reach $14,000 by 2025.
- Bitcoin is currently trading at $66,600, while Ethereum is at $3,280.
Market Adjustments Triggered by Geopolitical Tensions π
- The report underlines significant market adjustments, such as the largest daily liquidation of leveraged long positions in the Bitcoin futures market since October 2023.
- This liquidation, amounting to $261 million, was driven by geopolitical tensions in April.
- Standard Chartered’s projection of Bitcoin reaching $200,000 by the end of 2025 is based on assumptions of inflows into U.S. spot ETFs.
Hot Take π₯
Despite the delay in Ethereum ETF approval, the cryptocurrency market continues to show resilience. Standard Chartered’s bullish outlook on Bitcoin and Ethereum reflects the belief that positive structural drivers will support long-term growth in the digital asset space. While the challenges in the market may lead to short-term fluctuations, the overall trajectory remains upward, offering potential opportunities for savvy investors.
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