Eleanor Terrett, known for her insights on the Bitcoin ETF, recently cast doubt on the likelihood of a spot Ethereum ETF gaining SEC approval, dampening investor optimism. Yet, a Standard Chartered Bank official has presented a more hopeful stance, suggesting an approval for the Ethereum ETF might occur by May 23.
Spot Ethereum ETF: A Contrasting Perspective
Despite Terrett’s skepticism, Geoffrey Kendrick of Standard Chartered maintains a belief in the approval of the spot Ethereum ETF by the May deadline. Contrary to the dimming consensus, Kendrick projects a substantial influx of $15 to $45 billion into the ETF within its first year. His forecast references similar patterns from the Bitcoin ETF experience. Furthermore, Kendrick highlights the SEC’s historical stance of not labeling ETH as a security, a factor that could favor the ETF’s approval.
Potential Impact on Ethereum’s Price
Kendrick predicts a bullish future for Ethereum’s price should the ETF be approved. He anticipates that Ethereum’s value could soar to $8,000 by the end of 2024, a significant increase from an earlier prediction for 2026. Looking further ahead, he suggests a potential rise to $14,000 by the end of 2025. His analysis is based on the current BTC to ETH price ratio and the expected performance of BTC. Standard Chartered’s same-day projection for BTC hitting $150,000 by the end of 2024 lends weight to this Ethereum price forecast.
This positive outlook, however, is not widely shared, with many market experts doubting a May approval by the SEC. Bloomberg’s senior ETF Analyst Eric Balchunas notably revised his expectations down to 30%. Kendrick’s optimism remains undeterred, as he envisions a significant injection of capital into Ethereum following the ETF’s potential launch.
In conclusion, despite a mixed sentiment, Kendrick’s analysis suggests a strong financial injection and price surge for Ethereum, contingent upon an ETF approval. His estimates highlight the potential for a transformative effect on the Ethereum market, presenting an intriguing scenario for investors and market watchers alike.