Standard Chartered Bank has predicted that the US Securities and Exchange Commission (SEC) will give the green light to spot Ethereum exchange traded funds (ETFs) by May 23. reported January 30, citing an investigative report.
This expectation reflects the timeline and approach previously seen in the SEC’s approval process for spot Bitcoin ETFs.
The classification of Ethereum
According to Geoffrey Kendrick, head of forex and digital assets research at Standard Chartered, the approval of Ethereum ETFs seems likely given the SEC’s previous stance on ETH.
Unlike certain cryptocurrencies that have been classified as securities in legal actions against crypto companies, Ethereum has avoided such categorization. Furthermore, ETH’s presence as a regulated futures contract on the Chicago Mercantile Exchange increases the likelihood of approval.
Kendrick’s predictions go beyond mere approval and suggest a potential spike in Ethereum’s price to $4,000, similar to Bitcoin’s price performance before the ETF’s approval. He noticed:
“If ETH prices perform similarly to BTC prices leading up to BTC ETF approval, ETH could trade as high as $4,000 by then.”
Ethereum ETFs
The potential for Ethereum ETFs is not without nuances. Kendrick expects initial approvals to focus on simple Ethereum ETFs that track ETH’s price movements. He predicted that more complex offerings may emerge later, such as ETFs that incorporate yield rewards, with European models serving as a benchmark.
Furthermore, Kendrick comments on Ethereum’s upcoming network upgrades, such as Dencun or Proto-Danksharding, and sees them as beneficial for price growth. These upgrades will improve the value retention of the Ethereum ecosystem by lowering Layer 2 fees and maintaining higher stake rewards.
Kendrick also had a positive outlook on the broader cryptocurrency market, including Bitcoin. His previous projections expected a surge in the price of the flagship cryptocurrency to $100,000 by the end of the year and a staggering $200,000 by the end of 2025, driven by inflows into spot Bitcoin ETFs.
At the time of writing, Ethereum is ranked number 2 in terms of market capitalization and so is the ETH price upwards 3.16% in the last 24 hours. ETH has a market capitalization of $285.23 billion with a 24-hour trading volume of $9.81 billion. Learn more about ETH ›
Market summary
At the time of writing, the global cryptocurrency market is valued at $1.68 trillion with a 24-hour volume of $55.56 billion. Bitcoin’s dominance currently stands at 50.83%. Learn more >