Standard Chartered Bank Predicts SEC Approval of Ethereum ETF by May
Standard Chartered Bank has made a positive prediction that the United States Securities and Exchange Commission (SEC) will approve a spot Ethereum ETF by May. The bank anticipates that the SEC will make a decision on May 23, following a similar approval pattern as the spot Bitcoin ETF, which was approved on Jan. 10.
In a recent report, Standard Chartered Bank foresees approval for the spot Ethereum ETF, mirroring the SEC’s previous decision on a spot Bitcoin ETF. The head of FX Research, West, and Digital Assets Research at Standard Chartered, Geoff Kendrick, is optimistic that the scenario following the conversion of Grayscale’s Ethereum Trust into a spot Ethereum ETF will be different from Bitcoin’s sell-off.
Ethereum Price Speculation Post-Approval
This optimism stems from the fact that the Ethereum Trust does not command the same significant market share as the Bitcoin Trust did for Bitcoin. Furthermore, the bank predicts that Ethereum will hit $4,000 before the approval date, representing a 70% rise in price.
Kendrick believes that even if investors were to sell their shares after the conversion, Ethereum’s price should remain more stable compared to Bitcoin. He states, “These factors should make ETH less vulnerable than BTC to a post-approval selloff.”
Similar Approval Process to Spot Bitcoin ETF
The approval process for the Ethereum ETF is similar to the sequence of events observed with the spot Bitcoin ETF in 2023. The SEC consistently postponed the approval date until it reached the final deadline. On Jan. 25, the SEC postponed the decision on BlackRock’s spot Ethereum ETF application, pushing the verdict back another 45 days.
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Analyst comment
Positive news: Standard Chartered Bank predicts SEC approval of an Ethereum ETF by May, following a similar pattern as the approval of a Bitcoin ETF. The bank foresees Ethereum hitting $4,000 before the approval and believes that Ethereum will be less vulnerable to a post-approval sell-off compared to Bitcoin. The approval process for the Ethereum ETF is expected to be similar to the one for the Bitcoin ETF.
Market prediction: If the SEC approves the Ethereum ETF, it is likely to result in increased interest and investment in Ethereum, leading to a potential price surge in the short term. However, the market may experience some volatility as investors decide whether to hold or sell their shares. Overall, the market is expected to remain relatively stable and positive.
