February 1, 2024

Standard Chartered Forecasts Spot Ether ETFs to Receive Green Light by May

Standard Chartered's Head of Forex and Digital Assets Research predicts the SEC's potential approval of spot ether ETFs by May 23, drawing parallels to the regulatory approach taken with bitcoin ETFs.

The U.S. SEC, following a comparable pattern observed with bitcoin ETFs, is expected to grant approval for ETFs based on the cryptocurrency behind Ethereum by May 23, according to Standard Chartered Bank's Head of Forex and Digital Assets Research. This projection is based on the regulatory strategy where the SEC initially rejected bitcoin ETFs but later accepted them within the designated timeline.

Geoffrey Kendrick, displaying confidence in the crypto market, envisions a surge in ether (ETH) to $4,000 by the approval date. His positive outlook stems from ether's non-classification as a security by the SEC and its listing on the Chicago Mercantile Exchange.

Despite acknowledging the price fluctuations witnessed by bitcoin post-ETF approvals, Kendrick remains optimistic about sustained gains. He forecasts a potential rise to $100,000 for bitcoin by the end of the year and an impressive $200,000 by 2025.

Kendrick notes a lower likelihood of ether experiencing a significant price drop post-ETF approval compared to bitcoin. He attributes this to the relatively smaller size of the Grayscale Ethereum Trust in comparison to its bitcoin counterpart, suggesting that the sell-off impact on ether's market may be less pronounced.

The analyst speculates that the SEC may initially approve straightforward ether ETFs, with staking yield ETFs potentially following suit. However, Kendrick acknowledges that staking rewards currently face limitations due to elevated fees.

In addition to the ETF anticipation, Kendrick highlights an upcoming Ethereum upgrade that could positively influence ether's price. The impending upgrade is expected to reduce fees, enhancing Ethereum's competitiveness in the market.

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