02 March, 2024



Standard Chartered Forecasts Promising Future for ETH with Potential SEC Nod for ETFs

1 month ago

31 Jan, 2024

  • Standard Chartered predicts SEC approval for Ethereum ETFs by May, potentially raising Ethereum’s price to $4,000.
  • The bank compares Ethereum’s situation to Bitcoin’s earlier ETF approvals, indicating a positive trend in cryptocurrency regulation.
  • Uncertainty remains over the SEC’s classification of Ethereum as a security, with recent delays in decision-making for Ethereum ETF proposals.

Banking giant Standard Chartered has predicted a promising outlook for Ethereum. Anticipation looms on the possibility of the approval of spot Ethereum exchange-traded fund (ETF) in May by the U.S. Securities and Exchange Commission. This anticipated approval could mark a significant moment for Ethereum, potentially driving its price to $4,000. 

The bank’s forecast was in line with their expectation of a favorable SEC decision by May 23. This move came after the SEC’s approval of Bitcoin ETFs, showing that regulators are becoming more open to digital assets.

Geoffrey Kendrick, the head of crypto research at Standard Chartered, compared the SEC’s handling of Bitcoin and Ethereum ETFs. He noted that the SEC’s pattern of approving Bitcoin ETFs could be mirrored for Ethereum. Particularly, the SEC approved 11 spot Bitcoin ETFs on January 10. Kendrick believes that Ethereum’s legal and financial status was similar to Bitcoin’s, positioning it as a viable candidate for ETF approval.

However, there is still some uncertainty on how the SEC has segregated Ethereum. SEC Chairman Gary Gensler hadn’t clearly stated his view, although he had said most other crypto tokens are securities. Recently, the SEC decided to delay its decision on two Ethereum ETF proposals, one from BlackRock and one from Grayscale Investments.

Kendrick’s positive prediction for Ethereum’s price was based on factors such as market sentiment, volatility, and the likelihood of multiple ETF approvals on the final decision day. He also suggested that Ethereum could avoid the post-approval price drop Bitcoin experienced, citing the smaller market share of Grayscale’s Ethereum Trust in comparison to its Bitcoin counterpart. Kendrick stated that these factors should make ETH “less vulnerable than BTC” to a post-approval selloff.

In addition to Ethereum’s prospects, Standard Chartered also projects a substantial rise in Bitcoin’s value, predicting it might reach $200K by 2025. The bank continued to express a bullish stance on Bitcoin’s growth.

The potential approval of Ethereum ETFs represents a significant advancement for the digital asset market. With prominent firms like BlackRock proposing their Ethereum ETFs, investor interest has been piqued. The Commodities and Futures Trading Commission (CFTC) has long classified Ethereum as a commodity, further supporting the likelihood of ETF approval.

The Ethereum market, according to Glassnode data, has shown resilience and growth. Ethereum’s market interest, having initially declined, rebounded to around 40%, signaling a resurgence in confidence and interest. Michaël van de Poppe, a notable blockchain figure, highlighted the Ethereum Spot ETF hype as a major factor in this resurgence. The approval of these ETFs is anticipated to attract more investors, bolstering the Ethereum ecosystem.

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