Spot Ethereum ETFs to Be Approved This Week Standard Chartered
Geoff Kendrick, Standard Chartered’s top analyst, is betting big that the US Securities and Exchange Commission (SEC) will approve Ethereum exchange-traded funds (ETFs) by the end of the week. This might result in billions of dollars flowing into Ether in the first year alone, perhaps driving its price to $8,000 by the end of 2024.
Also Read: Fidelity Updates S-1 Application for Spot Ethereum ETF.
The SEC’s judgement is likely soon, after significant deadlines for spot ETH ETC applications from VanEck on May 23 and Ark Invest-21Shares on May 24. The time matches well with Kendrick’s high.
There is an 80% to 90% chance that these ETFs will receive regulatory approval.
Analyst expects massive inflows into Ethereum Kendrick’s prognosis, if correct, will have significant financial ramifications. Reportedly, he stated:
“We predict that spot ETFs will attract inflows of 2.39 to 9.15 million ether in the first 12 months following approval. In US dollars, that translates to $15 billion to $45 billion.”
Source: Trading View.
This flood parallels the impact of Bitcoin ETFs, confirming Kendrick’s predictions. Furthermore, Kendrick believes that if spot Ethereum ETFs are permitted, the altcoin might compete with Bitcoin. With Bitcoin anticipated to reach $150,000 by the end of 2024, Ether’s value could rise to $8,000, preserving the current 5.4% price ratio between the two cryptocurrencies, according to the expert.
Experts raise expectations for ETF approval.
Kendrick’s estimates do not finish at 2024. We anticipate even higher peaks for Bitcoin and Ethereum before the end of 2025.
Standard Chartered believes that Bitcoin might reach $200,000, meaning an Ethereum price of $14,000. These projections align with the
bank’s earlier targets for Ethereum, strengthening their bullishness on the leading altcoin.
Also read: Ethereum Targets $4,000 as Odds of Spot Ether ETF Improve.
Update: @JSeyff and I are upping our probability of spot Ether ETF approval to 75% (up from 25%), after hearing buzz this afternoon that the SEC could be making a 180 on this (increasingly political issue), thus everyone is scrambling (like us, everyone else expected to be refused). See… https://t.co/gcxgYHz3om
– Eric Balchunas (@EricBalchunas), May 20, 2024
Ether’s price soared late Monday (May 2), suggesting increasing optimism in the community, thanks to the expectation of ETF approval. This increase also lifted other major cryptocurrency tokens, allowing the bulls to take control. This market mood is supported by renowned Bloomberg analysts James Seyffart and Eric Balchunas, who increased their chances of a spot ETH ETF approval to 75%, up from 25%. ETF Issuers Have Been Strategizing.
The SEC’s ruling on Ethereum ETFS coincides with deadlines for several of the issuers, as previously stated. Meanwhile, Fidelity Investments has revised its S-1 application to better align with the SEC’s approval odds, particularly when it comes to staking the Ether tokens that would support the product.
Regarding Grayscale, Seyffart revealed that
The company has submitted an amended 19b-4 for the Ethereum Mini Trust. Grayscale believes that approving the Grayscale Ethereum Mini Trust would benefit current ETHE shareholders. An approval implies they’ll keep the same exposure, but with the added benefit of a lesser fee shared across both items.
This is the original 19b-4 for Grayscales’ tiny Ethereum trust. James Seyffart stated, “I don’t think this will be included in the first wave of potential approvals.”