Standard Chartered Forecasts Ethereum to Reach $4,000 by May Amidst Spot ETF Boom

Standard Chartered Bank has released a report predicting the approval of a spot Ethereum exchange-traded fund (ETF) in May 2024, which is expected to boost the price of Ethereum to $4,000. The bank’s research team, led by Geoff Kendrick, draws parallels between Ethereum and Bitcoin’s regulatory journeys and suggests that the US Securities and Exchange Commission (SEC) may initially reject the spot ETF but eventually grant approval. The bank identifies May 23 as the potential approval date and emphasizes the need for the market to improve its predictive accuracy. Kendrick states that if Ethereum’s price follows a similar trajectory to Bitcoin’s prior to its ETF approval, it could reach $4,000 by the designated date. The report also addresses the potential disparities in treatment between Ethereum and Bitcoin, highlighting the presence of Ethereum futures on the Chicago Mercantile Exchange. Standard Chartered remains optimistic about Ethereum’s market performance and suggests that it could outperform Bitcoin as the approval date approaches. It attributes this to factors such as the smaller market share of the Grayscale Ethereum Fund compared to the Grayscale Bitcoin Fund, which could result in lower selling pressure post-approval. Overall, there is growing speculation about the approval of Ethereum’s spot ETF in the market.