The Securities and Exchange Commission (SEC) is poised to adopt a strategy similar to its approach with spot bitcoin exchange-traded funds (ETFs), with the likely approval of spot Ethereum ETFs projected to commence, culminating in an approval milestone by May 23, as forecasted by Standard Chartered Bank.
Geoffrey Kendrick, Head of Forex and Digital Assets Research at Standard Chartered Bank, outlined in a recent report that the pending applications for ETH U.S. spot ETFs are anticipated to receive approval by the May 23 deadline, mirroring the sequence observed with BTC ETFs. Kendrick’s analysis suggests that if Ethereum’s price trajectory aligns with Bitcoin’s historical performance pre-ETF approval, ETH could surge to $4,000 by the deadline.
The bullish outlook for spot Ethereum ETF approval is predicated on several factors, including the SEC’s non-classification of ether as a security in legal actions against crypto entities and the regulated listing of ETH as a futures contract on the Chicago Mercantile Exchange (CME). Kendrick underscored that Grayscale’s ETH trust seeks ETF conversion, implying further regulatory alignment.
Kendrick maintains an optimistic stance on crypto markets, affirming that spot bitcoin ETFs, despite initial outflows from the Grayscale Bitcoin Trust, will progressively elevate the Bitcoin price, with his $100,000 year-end projection still within reach.
In contrast to Bitcoin’s post-ETF approval price fluctuations, Kendrick anticipates Ethereum’s resilience, attributing it to the lower market share of Grayscale Ethereum Trust and FTX holdings. He predicts a distinction between simple Ethereum ETFs and those incorporating staking yield rewards, with the latter potentially emerging at a later stage.
Looking ahead, Kendrick highlights Ethereum’s forthcoming Dencun or Proto-Danksharding upgrade as a catalyst for price appreciation, foreseeing increased value capture within the ETH ecosystem and sustained staking rewards. Despite mixed sentiments among crypto experts, Kendrick’s analysis reflects a prevailing optimism surrounding the imminent approval of spot Ethereum ETFs, signaling a potential turning point in the cryptocurrency landscape.
