Standard Chartered Forecasts ETH to Surge to $4K USD

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Standard Chartered Bank envisions a bullish surge in Ethereum’s value, foreseeing a substantial increase, particularly if ETF approvals materialize. Geoffrey Kendrick, the bank’s head of forex and digital assets research, has identified May 23 as a pivotal date, pointing to potential approval for the first batch of U.S. spot Ethereum ETFs by the SEC. Notably, this timeline aligns with the historical trajectory observed with Bitcoin ETFs.

In analyzing the SEC’s likely strategy and Ethereum’s market prospects, Kendrick draws parallels with the journey of Bitcoin ETFs. He highlights the significance of May 23, drawing comparisons to a key milestone for Bitcoin ETFs on January 10. According to Kendrick, Ethereum’s price trajectory could follow a similar upward pattern, possibly reaching as high as $4,000.

Kendrick’s optimism is grounded in various factors. Unlike Bitcoin, the SEC has not classified Ethereum as a security in its legal pursuits within the crypto space. This, coupled with Ethereum’s status as a regulated futures contract on the Chicago Mercantile Exchange, provides a robust argument for ETF approval.

Furthermore, the impending transition of Grayscale’s Ethereum trust into an ETF adds to the overall anticipation. Kendrick sees little reason for the SEC to deviate from the CME’s stance on Ethereum, reinforcing confidence in the potential approval of Ethereum ETFs.

Resilience and Future Trajectories

Ethereum’s market dynamics exhibit a resilience distinct from Bitcoin’s trajectory post-ETF approval, a phenomenon credited by Kendrick to the comparatively smaller market share of the Grayscale Ethereum Trust in contrast to its Bitcoin counterpart during BTC ETF approvals. Further safeguarding Ethereum from post-approval volatility is the notably low FTX holdings within this framework.

The anticipated date of May 23 might mark the introduction of basic Ethereum ETFs, aligning with the cryptocurrency’s price movements. Looking forward, Kendrick envisions the subsequent rollout of more intricate ETFs, potentially incorporating features like staking yield rewards.

While acknowledging the existence of such advanced ETFs in Europe, with the 21Shares Ethereum Staking ETP (AETH) serving as a prominent example, Kendrick underscores the tendency for higher fees associated with these ETFs to offset the benefits of staking rewards.

Implications of Upcoming Ethereum Enhancements

Kendrick delves into the impact of Ethereum’s upcoming Dencun or Proto-Danksharding upgrade in his analysis. He anticipates that this upgrade will fortify Ethereum’s value by enhancing the efficiency of the ecosystem. The reduction in Layer 2 fees not only renders Ethereum more competitive but also sets the stage for a sustained period of elevated staking rewards due to an expected deceleration in staking pace. These combined factors contribute to a positive outlook for Ethereum’s price.