Standard Chartered Bank has revised its forecast and now expects the U.S. Securities and Exchange Commission (SEC) to approve spot ethereum exchange-traded funds (ETFs) this week, with the bank’s head of digital asset research expressing 80% to 90% confidence. He estimates potential inflows of $15 billion to $45 billion into ether within the first year of approval. Markets are closely watching the SEC’s decisions, with the first deadlines falling on May 23 and 24. Standard Chartered also forecasts ether could reach $8,000 if bitcoin hits $150,000 by year-end.
Standard Chartered Now Expects SEC to Approve Spot Ethereum ETFs This Week
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$15 Billion to $45 Billion Inflows Expected
Markets are closely watching the U.S. Securities and Exchange Commission (SEC) as the regulator nears deciding whether to approve spot ether exchange-traded funds (ETFs). Anticipation is high due to upcoming deadlines for spot ether ETF proposals by Vaneck and Ark Invest/21shares on May 23 and 24, respectively.
Geoff Kendrick, Head of FX and Digital Assets Research at Standard Chartered, has revised his forecast and is now “80% to 90%” confident that the SEC will approve spot ethereum ETFs this week, the Block reported Tuesday. This updated prediction contrasts with his April outlook, when he expressed doubts about the SEC approving spot ethereum ETFs in May. The analyst detailed:
After approval, we estimate that spot ETFs will drive inflows of 2.39-9.15 million ether in the first 12 months after approval … In U.S. dollar terms, that equates to roughly $15 billion to $45 billion.
Kendrick also expects ether to maintain its price ratio of 5.4% with bitcoin throughout 2024, potentially reaching $8,000 if BTC hits $150,000 by year-end. “Given that we now see bitcoin reaching the $150,000 level by end-2024, this would imply a level of $8,000 for ether,” he shared.
Market expectations are also shaped by broader trends and regulatory developments. The potential reelection of former President Donald Trump is perceived as positive for the crypto market, with anticipated favorable regulatory conditions that could further drive cryptocurrency adoption and prices. Kendrick said earlier this month: “We think that a second Trump administration would be broadly positive via a more supportive regulatory environment.”
Do you think the Standard Chartered analyst is right about the SEC approving spot ethereum ETFs this week? Let us know in the comments section below.
