Standard Chartered Bank has indicated that the U.S. Securities and Exchange Commission (SEC) might be on track to approve Ethereum-based Exchange-Traded Funds (ETFs) by May 23, following a pattern similar to the initial rejections and eventual approval of Bitcoin ETFs. Geoffrey Kendrick, the bank’s head of forex and digital assets research, suggests that if Ethereum’s price trajectory mirrors that of Bitcoin’s during its ETF approval process, it could potentially reach $4,000.
Progress Toward Ethereum ETF Approval
Kendrick points out that Ethereum’s listing as a regulated futures contract on the Chicago Mercantile Exchange (CME) is a significant step toward ETF approval. He also notes that a possible rejection of Grayscale’s Ethereum trust conversion to an ETF could lead to further appeals, but sees no fundamental reason for the SEC to treat Ethereum differently than the CME does.
Kendrick’s optimism extends to cryptocurrency prices in general, with predictions of substantial capital inflows into the market and a Bitcoin price target of $100,000 by year’s end and $200,000 by the end of 2025. He believes that the anticipated steady inflows into spot Bitcoin ETFs will similarly bolster BTC prices over time.
The report also highlights that Ethereum has a lower sell sensitivity compared to Bitcoin, primarily because Grayscale’s Ethereum Trust holds a smaller proportion of the total ETH market value than its Bitcoin counterpart did prior to Bitcoin ETF approvals.
Kendrick speculates that simple Ethereum ETFs based on spot price movements could receive approval on May 23, with the possibility of ETFs that include staking yield rewards being introduced later. He mentions that such products are already available in Europe and that upcoming Ethereum upgrades, like Dencun or Proto-Danksharding, will likely enhance the value captured within the ETH ecosystem, positively impacting ETH prices.