Standard Chartered Expects SEC to Approve Spot Ethereum ETFs in May
Banking giant Standard Chartered expects the US Securities and Exchange Commission (SEC) to approve a spot Ethereum exchange-traded fund (ETF) in May. The analyst at the bank hopes the price of Ethereum will reach USD 4,000 by the expected approval date.
SEC to Adopt Bitcoin ETFs Approach for Ethereum ETF Approval
Standard Chartered published a report on Tuesday relating to its expectations on the US Securities and Exchange Commission (SEC) to approve spot Ethereum exchange-traded funds (ETFs) in May, reported Bloomberg. The bank's head of crypto research and Western emerging markets FX, Geoff Kendrick, hopes the approval of spot Ethereum ETFs is likely to be similar in approach to that of spot Bitcoin ETF approvals by the SEC.
The analyst stated that May 23 is the last date for the securities regulator to approve or disapprove spot Ethereum ETF applications from Vaneck and Ark 21shares. The SEC is likely to decide on the final date, similar to its January 10 approval of eleven spot Bitcoin ETFs. Kendrick believes that Ethereum’s legal and financial situation closely resembles that of Bitcoin, suggesting a similar approval pattern for spot Ethereum ETFs.
However, SEC Chairman Gary Gensler remains evasive on the classification of Ethereum as a security, despite his stance that most crypto tokens, other than Bitcoin, are securities. The SEC postponed its decisions on two spot Ethereum ETF applications last week from Blackrock and Grayscale Investments.
Bank's Analyst Predicts Ethereum’s Price to Reach USD 4,000
The Standard Chartered head of crypto research stated that Ethereum’s price is likely to reach USD 4,000 by the expected approval date of May 23. Ethereum is presently trading at USD 2,370.
Kendrick’s USD 4,000 ETH price target is based on several key assumptions, including general market sentiment for approval remaining low, implied volatility being wrong, and the SEC approving multiple spot Ethereum ETF applications on the same day, similar to the spot Bitcoin ETF applications.
Standard Chartered believes that Ethereum may not witness the selloff of the Bitcoin ETF faced by investors, including FTX, exiting the Grayscale Bitcoin Trust (GBTC). The analyst noted that Grayscale’s existing Ethereum Trust holds a smaller portion of the total market capitalization of Ethereum compared with the Bitcoin held in GBTC. He said:
"These factors should make ETH less vulnerable than BTC to a post-approval selloff."
Standard Chartered also said early this month that the price of Bitcoin could hit USD 200K in 2025.
What is your take on Standard Chartered’s prediction regarding spot Ethereum ETF approvals and the price of ETH? Please share your thoughts and opinions in the comments section below.
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