Standard Chartered, which was previously optimistic about the U.S. Securities and Exchange Commission (SEC) approving spot ether exchange-traded fund (ETF) applications in May, has now revised its prediction. The bank still sees a positive long-term future for spot ethereum ETFs.
Standard Chartered Updates Prediction: Doubts SEC Will Approve Spot Ether ETFs in May
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Standard Chartered on Spot Ether ETFs
Standard Chartered, previously optimistic about a May approval for spot ethereum exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC), now downplays the possibility. The bank, however, remains optimistic on spot ether ETFs in the long run, but tempers expectations for May approval.
Geoffrey Kendrick, head of Standard Chartered’s forex and crypto research, explained in a report on Tuesday: “We had previously expected the SEC to approve ETH ETFs on May 23. This was based on the view that the ETH approval process would follow a similar trajectory to BTC ETF approval (which the SEC granted in January), and that constructive dialogue would take place between the SEC and the ETF applicants, as it did in the lead-up to BTC ETF approval.” However, he stressed:
So far, however, no such dialogue has occurred (or at least been made public), suggesting that a May 23 approval date is unlikely.
“The gradual removal of negative drivers should allow bullish structural drivers of BTC to take over,” Kendrick detailed. “A higher BTC price would also boost ETH; and even if the US ETF is not approved in May, the global environment for ETFs continues to improve, and we expect eventual U.S. approval.”
Several firms and analysts have also become less optimistic about a May approval for spot ether ETFs. Vaneck CEO Jan Van Eck does not anticipate the SEC to greenlight his firm’s and Ark Invest’s applications this month. Similarly, JPMorgan analyst Nikolaos Panigirtzoglou sees only a 50% chance of approval in May, believing the SEC will eventually approve spot ether ETFs but not before potential legal battles are resolved.
The SEC’s stance on ether adds another layer of uncertainty to the approval process. SEC Chairman Gary Gensler has previously stated most crypto tokens, except bitcoin, are securities, but hasn’t explicitly addressed ether’s classification. Recently, 48 U.S. lawmakers pressured the SEC chairman for clarification on whether ETH is a security.
Do you think the SEC will approve spot ether ETF applications in May? Let us know in the comments section below.
