With key deadlines looming, Standard Chartered (OTC: SCBFF) maintains an optimistic outlook on Ethereum (ETH-USD) ETF approvals and their market impact. The British banking giant is “80% to 90%” sure the SEC will approve these crypto applications, eyeing key deadlines for VanEck on May 23 and Ark 21 Shares on May 24. Their price target for Ethereum is one that will make the crypto community happy: $8,000.
The Expected Impact
If the SEC approves these spot Ether ETFs, Standard Chartered predicts a flood of investment. The bank estimates these funds could pull in between 2.39 to 9.15 million ETH in the first year, roughly $15 billion to $45 billion USD. This estimate is based on the inflows seen with the recently approved spot Bitcoin ETFs.
The bank’s crystal ball suggests Ether’s price could skyrocket, maintaining a 5.4% price ratio with Bitcoin. If Bitcoin hits $150,000, as the bank predicts, we could see Ethereum hit $8,000 by year’s end.
Regulatory Movement and Market Reactions
This optimism isn’t just wishful thinking. The SEC has been stirring the pot, asking exchanges wanting to list these ETFs to update their filings. Bloomberg analyst James Seyffart noted that at least five potential Ethereum ETF issuers—Fidelity, VanEck, Invesco/Galaxy, Ark/21Shares, and Franklin—submitted their Amended 19b-4 forms in a flurry on Tuesday, suggesting things are heating up.
But hold your horses—even with SEC approval, it’s not like these ETFs will start trading tomorrow. It could take months for these products to hit the market, given the additional regulatory hurdles like S-1 registration statements.
A Political Undertone
Seyffart and fellow Bloomberg ETF analyst Eric Balchunas have hinted that this rapid movement might be politically motivated. Seyffart admitted he was caught off guard by the SEC’s apparent pivot, a sentiment shared by many in the market.
Industry insiders were equally skeptical. Katherine Dowling, general counsel for ETF applicant Bitwise, mentioned that most people were bracing for a disapproval. VanEck CEO Jan van Eck also predicted a likely denial in a recent CNBC interview.
The SEC’s decision on these spot ETH ETF applications could be a game-changer for the crypto market. Approval would legitimize Ethereum as a mainstream investment asset, potentially driving huge capital inflows and pushing prices higher.
Is Ethereum a Buy?
According to TipRanks’ Summary of Technical Indicators, Ethereum is a Buy.
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