Financial experts at Standard Chartered Bank are expressing optimism regarding the US Securities and Exchange Commission’s (SEC) approval of the first Ethereum spot exchange-traded funds (ETFs). This positive outlook is accompanied by a bullish price prediction for Ethereum (ETH), with a target of $8,000 by the end of 2024.
The cryptocurrency market is closely watching the SEC’s decisions on several pending Ethereum spot ETF applications. The deadlines for these applications are rapidly approaching, with the SEC expected to rule on VanEck’s ETF in two days and Ark Invest’s filing by May 24th. This sense of urgency has heightened anticipation for potential approvals this week.
Further fueling speculation is a recent request by the SEC for updated 19b-4 filings from cryptocurrency exchanges. Market analysts interpret this request as a positive sign, suggesting the SEC is actively reviewing applications and preparing for potential approvals.
Bloomberg analysts Eric Balchunas and James Seyffart have revised their initial approval likelihood estimate from 25% to a significantly more bullish 75%, reflecting this shift in sentiment.
Geoff Kendrick, Standard Chartered’s Head of Digital Assets Research, predicts a high probability (80-90%) of the SEC approving Ethereum spot ETFs this week. He anticipates that these approvals will trigger significant demand for ETH tokens, with estimates ranging from 2.39 million to 9.15 million in the first year following approval. This translates to a potential market inflow of $15 billion to $45 billion.
Kendrick’s analysis draws a parallel to the impact of Bitcoin ETFs on the market. Standard Chartered’s projections for Bitcoin inflows have been largely accurate, suggesting a similar pattern could emerge with Ethereum ETFs. Furthermore, Kendrick expects the price ratio between Ethereum and Bitcoin to remain relatively stable at around 5.4% for the rest of 2024.
Based on this price ratio and assuming Bitcoin reaches $150,000 by year-end, Kendrick’s analysis suggests a potential price target of $8,000 for Ethereum. This represents a significant increase of over 113% from the current price of $3,749 (as of press time).
While $8,000 is a significant target for 2024, Standard Chartered maintains a longer-term bullish outlook for Ethereum. Previous forecasts from the bank set $14,000 for ETH price by the end of 2025. This aligns with their projection of Bitcoin reaching $200,000 next year.
The potential approval of Ethereum spot ETFs this week, along with Standard Chartered’s optimistic price predictions, has injected a dose of excitement into the cryptocurrency market. While the SEC’s final decision remains to be seen, the coming days could be pivotal for Ethereum’s price trajectory.
Follow us on Twitter, Facebook, Telegram, and Google News
As established cryptocurrencies like XRP, Dogecoin, Shiba Inu, and Cardano aim for significant growth, speculation…
The story of a young mathematics prodigy who earned $40 million from his initial investment…
As the cryptocurrency market expands, investors are looking beyond giants like Bitcoin and Ethereum to…
As Bitcoin approaches the elusive $100,000 milestone, the entire cryptocurrency landscape is set for a…
Coinbase recently announced the availability of PEPE, the meme-inspired cryptocurrency, on its trading platform with…
Cryptocurrency markets are buzzing with anticipation as analysts predict significant gains for XRP, expecting its…