Standard Chartered Bank, a prominent global financial institution, has expressed confidence in the potential approval of spot Ethereum exchange-traded funds (ETFs) by their initial deadline of May 23. Geoffrey Kendrick, head of forex and crypto research at Standard Chartered Bank, maintains that despite skepticism from other commentators, spot Ethereum ETFs could still receive approval.
“My view is still that they will be approved on May 23. Although I note this is now a non-consensus view,” Kendrick stated in a recent statement to The Block. He estimates that if the ETFs are approved, it could lead to inflows ranging from $15 to $45 billion in the first 12 months, using similar logic applied to ETF inflows.
Earlier predictions by Kendrick suggested the likelihood of spot Ethereum ETFs being approved on May 23, primarily due to the Securities and Exchange Commission’s (SEC) non-classification of ETH as a security in its legal actions against crypto companies. Recent developments, such as the London Stock Exchange’s acceptance of applications for exchange-traded notes backed by BTC and ETH in Q2, further bolster the case for ETH ETF approval, according to Kendrick’s report.
While acknowledging dissenting views among commentators, Kendrick remains optimistic about the May 23 deadline, contrasting with lowered expectations from other analysts. Despite reduced expectations from figures like Bloomberg senior ETF Analyst Eric Balchunas and the Polymarket predictions platform, Kendrick anticipates significant inflows to Ethereum driven by ETFs, similar to the pattern observed with BTC ETFs post-approval.
“We estimate that spot ETFs will drive inflows of 2.39-9.15 million ETH in the first 12 months after approval,” Kendrick stated in the report, equating to approximately between $15 billion and $45 billion.
Standard Chartered Bank’s insights highlight the potential impact of spot Ethereum ETFs on the cryptocurrency market and underline the growing interest of institutional investors in digital assets.
