Standard Chartered predicts Ethereum ETF authorization by May 23
Geoffrey Kendrick, an expert from Standard Chartered Bank, has made a prediction that the U.S. Securities and Exchange Commission (SEC) will approve Ethereum exchange-traded funds (ETFs) by May 23. Drawing parallels with the SEC’s approach to Bitcoin ETFs, Kendrick believes that the approval of Ethereum ETFs will have a positive impact on the price of Ethereum (ETH), potentially driving it up to $4,000 by the aforementioned date.
Kendrick’s confidence in this prediction stems from the fact that the SEC has not treated Ether as a security in its previous legal actions. Notably, Ether is already being traded as a future on the Chicago Mercantile Exchange. Kendrick highlights that Grayscale, the company behind an Ethereum trust, intends to convert it into an ETF. If their application is denied, Kendrick believes they will likely appeal, arguing that there is no reason for the SEC to treat Ethereum differently from Bitcoin.
In general, Kendrick maintains an optimistic outlook on cryptocurrencies and their price valuations. He predicts that Bitcoin could reach $100,000 by the end of this year and $200,000 by 2025. He believes that these targets are achievable, particularly as more funds are expected to flow into Bitcoin ETFs.
Following the approval of Bitcoin ETFs, there was a slight drop in Bitcoin’s price due to outflows from the Grayscale Bitcoin Trust. However, the price has since rebounded and currently stands at around $43,540. Kendrick anticipates that Ethereum will not experience a similar post-approval price drop, as the Grayscale Ethereum Trust is not as significant a factor in the Ethereum market as the Grayscale Bitcoin Trust was for Bitcoin.
Kendrick expects that on May 23, the SEC will approve basic Ethereum ETFs that track the price of Ethereum. He suggests that ETFs incorporating additional earnings from staking may come later, and notes that such ETFs already exist in Europe.
Furthermore, Kendrick discusses the upcoming upgrades to Ethereum, noting that they are expected to enhance its competitive position and maintain high staking rewards for a longer period. This, in turn, is likely to benefit the price of Ethereum.
In conclusion, Kendrick’s predictions and insights indicate the potential for significant developments in the Ethereum market, with the pending approval of ETFs and the positive impact of upcoming upgrades.
