StanChart believes SEC will approve Ethereum ETFs in May

Standard Chartered Bank has projected that the US Securities and Exchange Commission (SEC) will give the green light to detect ethereum exchange-traded funds (ETFs) by May 23, The Block ethereum-etf-approval-may-standard-chartered-bank?utm_source=onecryptofeed&utm_medium=social”>reported Jan. 30, citing an investigative report.

This expectation reflects the timeline and approach previously seen in the SEC approval process for bitcoin spot ETFs.

ethereum Ranking

According to Geoffrey Kendrick, head of foreign exchange and digital assets research at Standard Chartered, approval of ethereum ETFs seems likely given the SEC's previous stance on eth.

Unlike certain cryptocurrencies that have been classified as securities in legal actions against cryptocurrency companies, ethereum has avoided such categorization. Furthermore, the presence of eth as a regulated futures contract on the Chicago Mercantile Exchange reinforces the likelihood of approval.

Kendrick's predictions extend beyond mere approval, suggesting a possible rise in ethereum's price to $4,000, similar to bitcoin's price performance prior to its ETF approval. He noticed:

“If eth prices behave similarly to how btc prices behaved in the lead-up to the btc ETF approval, eth could trade as high as $4,000 by then.”

ethereum ETF

The potential of ethereum ETFs is not without nuances. Kendrick anticipates that initial approvals will focus on simple ethereum ETFs that track eth price movements. He predicted that more complex offerings, such as ETFs that incorporate staking performance rewards, could emerge later, taking cues from European models.

Furthermore, Kendrick comments on the impending ethereum network upgrades, such as Dencun or Proto-Danksharding, considering them beneficial for price growth. These upgrades will improve the value retention of the ethereum ecosystem by reducing Layer 2 fees and maintaining higher staking rewards.

Kendrick also maintained a positive view of the broader cryptocurrency market, including bitcoin. His previous projections anticipated a rise in the price of the flagship cryptocurrency to $100,000 by the end of the year and a staggering $200,000 by the end of 2025, driven by inflows into spot bitcoin ETFs.