<img src="https://crypto.news/app/uploads/2023/10/crypto-news-ethereum-logo-purple-light-green-and-white-blurry-backgrou-v5.2.jpg” />
Standard Chartered Bank's Geoffrey Kendrick predicts the SEC will approve US ethereum ETFs by May 23.
Starting with initial rejections before granting approval, Standard Chartered sees parallels between the ethereum ETF and the SEC's approach to bitcoin ETFs.
Geoffrey Kendrick, who heads the bank's forex and digital asset research, believes ethereum ETFs in the US will get the green light by the end of May. Kendrick compares this situation to what happened with bitcoin ETFs and believes that the price of ethereum (eth) may reach $4,000 by then due to the hype.
Kendrick's confidence comes from the fact that the SEC has not treated Ether as a security in its legal actions. Ether is already trading as a future on the Chicago Mercantile Exchange.
“Grayscale, which has an ethereum trust, wants to convert it into an ETF. If they are denied, they will probably appeal,” he said, adding that there is no reason for the SEC to treat ethereum any differently.
Kendrick is generally bullish on cryptocurrencies and their price valuations. Kendrick predicted that bitcoin could reach $100,000 by the end of this year and $200,000 in 2025. He believes these goals are possible, especially as funds are expected to continually flow into bitcoin ETFs.
Following the approval of the bitcoin ETF, the price of bitcoin fell slightly due to outflows from the Grayscale bitcoin Trust, but the price of bitcoin has since recovered and is now around $43,540. Kendrick believes ethereum will not face the same type of post-approval price drop because the Grayscale ethereum Trust is not as big a part of the ethereum market as the Grayscale bitcoin Trust was for bitcoin.
Kendrick expects the SEC to approve core ethereum ETFs that track the price of ethereum on May 23. He adds that ETFs that include additional staking profits could come later and already exist in Europe.
Kendrick also talks about the upcoming ethereum upgrades, saying that they should make ethereum more competitive and prevent rewards from staying high for longer and that this, in turn, will benefit the price of ethereum.
