Standard Chartered anticipates spot Ethereum ETFs approval this week

Standard Chartered expects SEC approval of Ethereum ETFs this week.
The bank predicted inflows of $15-45 billion that could drive ETH price to $8,000 by the end of 2024.
Ether’s price has surged 19% in the past 24 hours, reflecting the optimism in the market.

Standard Chartered expects the U.S. Securities and Exchange Commission (SEC) to approve Ethereum (ETH) ETFs this week.

If it happens, it could herald a substantial influx of capital into the ether market, with projections estimating inflows between $15 billion and $45 billion in the first 12 months post-approval.

The critical ether ETFs proposal deadlines

The SEC is approaching critical deadlines for several ether ETF proposals, with VanEck’s submission due on May 23 and Ark Invest/21Shares’ on May 24.

Geoff Kendrick, Head of FX Research and Digital Assets Research at Standard Chartered, stated that the approval of spot ether ETFs could drive significant market activity, with anticipated inflows ranging from 2.39 million to 9.15 million ether.

Kendrick emphasized that these inflows, as a percentage of market capitalization, are comparable to those seen with bitcoin ETFs, which have proven to be accurate predictors of market behaviour.

Ethereum (ETH) price forecasts

In light of this, Standard Chartered has reiterated its ambitious price target for Ethereum (ETH), forecasting it to reach $8,000 by the end of 2024. This projection is based on maintaining the current 5.4% price ratio between ether and bitcoin, with bitcoin itself expected to hit $150,000 by year-end.

The bank’s outlook extends even further, predicting that by the end of 2025, Ethereum (ETH) price could soar to $14,000, assuming Bitcoin reaches a staggering $200,000.

These optimistic targets underscore the potential impact that ETF approvals could have on the broader cryptocurrency market.

SEC requested updates to the 19b-4 spot Ethereum ETFs filings

The momentum towards approval gained additional support on Monday when the SEC requested updates to the 19b-4 filings for spot ether ETFs.

This move suggests progress, albeit without guaranteeing approval. However, the likelihood of approval has been bolstered significantly.

As a result of the SEC’s move, Bloomberg ETF analysts James Seyffart and Eric Balchunas increased their approval probability estimates from 25% to 75%.

Update: @JSeyff and I are increasing our odds of spot Ether ETF approval to 75% (up from 25%), hearing chatter this afternoon that SEC could be doing a 180 on this (increasingly political issue), so now everyone scrambling (like us everyone else assumed they’d be denied). See… https://t.co/gcxgYHz3om

— Eric Balchunas (@EricBalchunas) May 20, 2024

Reflecting the growing optimism, Ethereum’s price surged over 19% in the past 24 hours, reaching $3,782.68 as of 12:28 P.m. ET on May 21.

The broader cryptocurrency market also reacted positively, with the GM 30 Index, which tracks the top 30 cryptocurrencies, rising by 9.25% to 148.75.