Standard Chartered Bank Predicts SEC Approval of Ethereum Spot ETF on Specified Date, Anticipating ETH Price Surge to $4k

In its latest report on Tuesday, the Standard Chartered Bank predicted that a spot Ethereum exchange-traded fund (ETF) will be approved in May 2024. The bank anticipates a bullish run for Ethereum following the regulatory approval, with a potential surge of 70% from its current price, reaching $4000 by May.

Standard Chartered’s research team, led by analyst Geoff Kendrick, expects that Ethereum will follow a similar trajectory to Bitcoin. They believe that the U.S. Securities and Exchange Commission (SEC) will initially reject the issuer of the spot Ethereum ETF but eventually approve it, with the expected date of approval tentatively set for May 23. The bank, however, emphasizes the need for the market to be more accurate in assessing the likelihood of approval.

Geoff Kendrick, head of the SCB Research Team, states in the report that if pending applications for ETH spot ETFs are approved on May 23, Ethereum could trade as high as $4,000 by then, drawing parallels to Bitcoin’s price performance leading up to its ETF approval. The report highlights that there is no fundamental reason for the SEC to treat Ethereum differently from Bitcoin, as ETH futures are already listed on the regulated Chicago Mercantile Exchange.

On the other hand, TD Cowen’s Washington Research Group suggests that the delay in approving spot Ethereum ETFs is due to political pressure on SEC Chair Gary Gensler. They predict that spot Ethereum ETFs are more likely to be approved by 2025-2026, with the least likelihood of approval this year. As the U.S. Elections approach in November 2024, Gensler is expected to delay approval and exercise caution.

Standard Chartered expects Ethereum prices to closely track or potentially outperform Bitcoin as the approval date approaches. They suggest that Ethereum may face less selling pressure post-ETF approval compared to Bitcoin, citing the smaller market share of Ether’s capitalization held by the Grayscale Ethereum Fund (ETHE) and the FTX bankruptcy estate.

In conclusion, the market is full of anticipation regarding the approval date of the Ethereum spot ETF. However, these expectations also reflect the confidence that Ethereum ETFs will be approved, regardless of the timing.