- Standard Chartered expects SEC approval of its Ethereum ETF this week.
- The bank forecast inflows of $15 billion to $45 billion by the end of 2024, which could push the price of ETH to $8,000.
- The price of Ethereum has surged 19% in the past 24 hours, reflecting market optimism.
Standard Chartered expects the U.S. Securities and Exchange Commission (SEC) to approve an Ethereum (ETH) ETF this week.
If that happens, it could herald significant capital flowing into the Ether market, with inflows of between $15 billion and $45 billion expected in the first 12 months following approval.
Important Ethereum ETF Proposal Deadlines
The SEC has important deadlines ahead for several ether ETF proposals, including VanEck’s filing deadline of May 23rd and Ark Invest/21Shares’ filing deadline of May 24th.
Geoff Kendrick, head of FX research and digital asset research at Standard Chartered, said the approval of a spot ether ETF could spur significant market activity, with expected inflows ranging from 2.39 million to 9.15 million ether.
Kendrick emphasized that these inflows, as a percentage of market capitalization, are similar to those seen in Bitcoin ETFs, which have proven to accurately predict market behavior.
Ethereum (ETH) price prediction
In response, Standard Chartered reiterated its ambitious price target for Ethereum (ETH), predicting it will reach $8,000 by the end of 2024. This forecast is based on maintaining the current price ratio of 5.4% between Ethereum and Bitcoin, including Bitcoin itself. It is expected to reach $150,000 by the end of the year.
The bank’s forecast extends even further, predicting that the price of Ethereum (ETH) could surge to $14,000 by the end of 2025, assuming Bitcoin reaches $200,000.
These optimistic targets highlight the potential impact that ETF approval could have on the broader cryptocurrency market.
The SEC has requested an update on the 19b-4 spot Ethereum ETF filing.
Momentum toward approval was further supported on Monday when the SEC requested a 19b-4 filing update for the spot ether ETF.
Although it does not guarantee approval, the move signals progress. However, your chances of approval have increased significantly.
The SEC’s action prompted Bloomberg ETF analysts James Seyffart and Eric Balchunas to increase their estimate of the odds of approval from 25% to 75%.
update: @JSeyff And I am increasing the probability of spot Ether ETF approval to 75% (up from 25%). I heard this afternoon that the SEC may do a 180 on this (an increasingly political issue). It will be rejected.) Take a look… https://t.co/gcxgYHz3om
— Eric Balchunas (@EricBalchunas) May 20, 2024
Reflecting growing optimism, the price of Ethereum has surged more than 19% in the past 24 hours, reaching $3,782.68 as of 12:28 PM ET on May 21.
The broader cryptocurrency market also responded positively, with the GM 30 Index, which tracks the top 30 cryptocurrencies, rising 9.25% to 148.75.