Financial analysts at Standard Chartered Bank are expressing optimism regarding the impending approval of the first Ethereum spot exchange-traded funds (ETFs) by the US Securities and Exchange Commission (SEC). This positive sentiment is accompanied by a bullish Ethereum (ETH) price prediction, targeting $8,000 by the end of 2024.
Growing Expectations for Ethereum ETF Approvals
The cryptocurrency market is eagerly awaiting the SEC’s decisions on multiple pending Ethereum spot ETF applications. With deadlines swiftly approaching, the SEC is anticipated to rule on VanEck’s ETF within two days and Ark Invest’s filing by May 24th. This sense of urgency has intensified expectations for potential approvals this week.
Adding to the speculation is the SEC’s recent request for updated 19b-4 filings from cryptocurrency exchanges. Market analysts interpret this request as a favorable indication, suggesting that the SEC is actively scrutinizing applications and preparing for potential approvals. Bloomberg analysts Eric Balchunas and James Seyffart have revised their initial estimate of approval likelihood from 25% to a significantly more bullish 75%, reflecting this shift in sentiment.
Standard Chartered: Ethereum Price Surge Expected with ETF Approval
Geoff Kendrick, Head of Digital Assets Research at Standard Chartered, predicts a high likelihood (80-90%) of the SEC approving Ethereum spot ETFs this week. He foresees these approvals sparking substantial demand for ETH tokens, estimating inflows ranging from 2.39 million to 9.15 million in the first year post-approval. This could potentially result in a market influx of $15 billion to $45 billion.
Kendrick’s analysis draws parallels to the impact of Bitcoin ETFs on the market, with Standard Chartered’s previous Bitcoin inflow projections proving largely accurate. This suggests a similar trend could unfold with Ethereum ETFs. Additionally, Kendrick expects the Ethereum-to-Bitcoin price ratio to stabilize around 5.4% for the remainder of 2024.
Based on this price ratio and assuming Bitcoin reaches $150,000 by year-end, Kendrick’s analysis indicates a potential Ethereum price target of $8,000. This represents a substantial increase of over 113% from the current price of $3,749 (as of press time).
Related: Ethereum Surpasses Mastercard in Market Capitalization
Long-Term Bullish Perspective on Ethereum
While $8,000 marks a significant target for 2024, Standard Chartered maintains a bullish long-term outlook for Ethereum. Previous forecasts from the bank set a target of $14,000 for ETH by the end of 2025, aligning with their projection of Bitcoin reaching $200,000 next year.
The potential approval of Ethereum spot ETFs this week, coupled with Standard Chartered’s optimistic price forecasts, has injected excitement into the cryptocurrency market. While the final decision rests with the SEC, the upcoming days could prove pivotal for Ethereum’s price trajectory.
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