Standard Chartered reaffirmed its projection that ethereum (eth) will reach $8,000 by the end of the year, following increased anticipation over ETF approvals.
StanChart head of cryptocurrency research Geoffrey Kendrick said in a note shared with CryptoSlate that recent developments reflect increased investor optimism and increased market activity.
Kendrick's statement comes after Bloomberg analyst Eric Balchanus significantly increased the likelihood of ethereum spot ETFs being approved this week.
Balchanus raised the odds from 25% to 75%, citing changes in the Biden administration's stance on approvals. Polymarket similarly revised the approval odds to over 60% from 10%.
The announcement has had a ripple effect throughout the cryptocurrency market, influencing both trading platforms and asset prices.
Kendrick also highlighted that the net asset value (NAV) discount on eth Grayscale Trust (ETHE) narrowed significantly over the past day, jumping from -25% to -12%, indicating growing optimism in the market.
ethereum prices have responded strongly, rising 18% to $3,700. This surge has had a positive impact on the overall crypto market, with several digital assets experiencing similar bullish trends. Attention now turns to the US SEC, which is expected to make a decision on eth applications on Thursday.
Balchanus recalled the SEC's approval of bitcoin (btc) ETFs on January 10, which came shortly after a report of the SEC's twitter account being hacked the day before. Market participants are closely watching a similar timing pattern in the eth ETF decision.
In a March research note, Kendrick projected that the approval of eth ETFs could generate inflows ranging from $15 billion to $45 billion over the first year. He stands by this forecast, emphasizing the potentially greater impact of eth ETF flows compared to btc ETFs.
He argued that the relative lack of alternatives to eth holdings prior to ETFs and the perception of ethereum as the “big tech” of digital assets will generate significant investor interest.
Kendrick has set ambitious price targets for ethereum, predicting that it will reach $8,000 by the end of 2024 and $14,000 by the end of 2025.
He also noted the positive implications for bitcoin, expecting a new all-time high for btc by the weekend, surpassing the previous peak of $73,798 set on March 14. It reiterated its year-end price targets of $150,000 by 2024 and $200,000 by 2025 for bitcoin.
The impending decision on eth ETFs could further legitimize the crypto sector, potentially generating significant capital inflows and boosting market confidence. Investors and market watchers are awaiting Thursday's decision, which could mark a pivotal moment for ethereum and the broader digital asset market.
