Ethereum Eyes $4,000 by May as Standard Chartered Predicts Spot ETF Boom

In a recent report, Standard Chartered Bank has set its sights on the anticipated approval of a spot Ethereum exchange-traded fund (ETF) in May 2024. The bank projects a robust 70% surge in Ethereum’s value, reaching an impressive $4,000 by the close of May.

Here are all the interesting details you ought to know.

Analyzing Trends & Regulatory Expectations

Headed by renowned analyst Geoff Kendrick, Standard Chartered’s research team draws parallels between Ethereum and Bitcoin’s trajectories. The report suggests a regulatory journey mirroring Bitcoin’s, where the U.S. Securities and Exchange Commission (SEC) may initially reject the spot ETF but is expected to grant approval eventually.

The bank identifies May 23 as the tentative date for the delayed approval, emphasizing the need for the market to refine its predictive accuracy. Quoting from the report itself in a portion subheaded as ‘History doesn’t repeat itself, but it often rhymes,’ Geoff Kendrick, the head of SCB Research Team, writes,

“pending applications for ETH U.S. spot ETFs to be approved on May 23, the final deadline for the first of the ETFs under consideration — the equivalent date to Jan. 10 for BTC ETFs. If ETH prices perform similarly to BTC prices in the lead-up to BTC ETF approval, ETH could trade as high as $4,000 by then.” 

Read More: TD Cowen Predicts Approval for Spot Ethereum ETF by 2025-2026

ETH vs. Bitcoin

Addressing potential disparities in treatment, the report contends that there’s “no fundamental reason” for the SEC to treat Ethereum differently than Bitcoin. It highlights the presence of Ethereum futures on the Chicago Mercantile Exchange (CME). In contrast, TD Cowen’s Washington Research Group projects a more extended approval timeline, potentially until 2025-2026, citing political pressures.

Optimistic for Ethereum

Standard Chartered remains optimistic about Ethereum’s market performance, foreseeing it potentially outperforming Bitcoin as the approval date approaches. Drawing parallels to Bitcoin’s 85% surge post-ETF approval, the report suggests Ethereum might experience less selling pressure post-approval due to factors like the Grayscale Ethereum Fund’s (ETHE) smaller market share compared to the Grayscale Bitcoin Fund (GBTC).

Also Read: Approval for Ethereum ETFs Coming Soon? Key Challenges You Should Know

In conclusion, the market is abuzz with speculations surrounding the approval of Ethereum’s spot ETF.