Standard Chartered Bank expects the SEC to approve spot Ethereum ETF products on May 23. Additionally, the Bank predicts a price for ETH if it mimics the pre-approval performance of BTC.
Most likely date and ETH price prediction for Ethereum ETF
According to Standard Chartered Bank, the U.S. Securities and Exchange Commission (SEC) will follow the same strategy for spot Ethereum ETFs as it does for spot Bitcoin ETFs. That’s why it will start by rejecting it as a province. However, it will ultimately approve Ethereum ETF products on the first approval deadline on May 23. Geoffrey Kendrick, the Bank’s director of forex and digital assets research, published a report on Tuesday. In this report, Kendrick included the following assessment:
We expect pending applications for Spot Ethereum ETFs to be approved on May 23, which is the deadline for the first of the ETFs under consideration. This is the equivalent date of January 10 for BTC ETFs. If ETH prices perform similarly to how BTC prices did in the run-up to BTC ETF approval, ETH could rise to $4,000 by then.
Kendrick envisions the approval of spot Ethereum ETFs primarily on the grounds that the SEC does not categorize Ethereum as a security in its legal actions against crypto companies. ETH’s listing as a futures contract on the Chicago Mercantile Exchange adds weight to this expectation. In this context, Kendrick said, “Grayscale also has an ETH trust that it wants to convert into an ETF. Therefore, rejection of this application will likely lead to another appeal by Grayscale. “We see no fundamental reason for the SEC to view ETH differently than CME already does,” he adds.
Expert still optimistic in Bitcoin!
Geoffrey Kendrick has an optimistic view on crypto in general, and prices in particular. Earlier this month, before spot Bitcoin ETFs were approved, he said these funds were expected to attract $50-100 billion in inflows this year, and as a result, the price of Bitcoin could rise to $100,000 by the end of the year and $200,000 by the end of 2025.
In today’s report, Kendrick stated that the $100,000 price estimate is still valid. He also noted that steady inflows into spot Bitcoin ETFs will gradually push the Bitcoin price higher. Bitcoin price declined following spot Bitcoin ETF approvals, primarily due to outflows from Grayscale Bitcoin Trust (GBTC). However, cryptokoin.comAs you follow from , he has since returned. The leading cryptocurrency is currently trading around $43,540. Kendrick says Ethereum is less susceptible to the post-confirmation sell-off that Bitcoin has seen.
Approval of Ethereum ETF products containing staking returns is due later.
Geoffrey Kendrick expects approval of simple Ethereum ETFs that simply replicate Ethereum price movements on May 23. Therefore, he predicts that ETFs containing staking yield rewards will receive approval later. Additionally, Kendrick says:
Both types are present in Europe; AETH (21Shares Ethereum Staking ETP) is the largest ETF with staking yield rewards. However, given that AETH has higher fees than ETH, staking rewards are offset by fees.
Kendrick also weighs in on Ethereum’s upcoming Dencun (Proto-Danksharding) upgrade. He says this will benefit the price of ETH. In this context, “Overall, lower Tier-2 fees will make ETH more competitive. Additionally, slower staking will keep staking rewards higher for longer. Therefore, this upgrade will benefit the Ethereum ecosystem. “Both of these are positive for ETH prices.” He concludes his words by saying.
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