A well-known researcher at Standard Chartered has expressed optimism regarding the approval of the first Ethereum spot ETFs by the U.S. Securities and Exchange Commission (SEC) this week. The researcher predicts that if approved, the market value of Ethereum (ETH) could reach $8,000 in the near future.
There has been growing anticipation surrounding the SEC’s decision on Ethereum ETFs, especially as the deadline for pending applications approaches. For example, the SEC is expected to make a decision on VanEck’s Ethereum spot ETF in two days, and Ark Invest’s application deadline follows closely on May 24.
In the meantime, the SEC has reportedly requested updated filings from exchanges regarding 19b-4 filings. Market experts interpret this request as a positive indication that approval is imminent. Bloomberg analysts Eric Balchunas and James Seyffart have even revised their earlier projection of a 25% chance of approval to a more optimistic 75%.
Geoff Kendrick, the Head of Digital Assets Research at Standard Chartered, expressed his confidence in the SEC’s approval during a recent interview, stating that there is an 80% to 90% certainty of a positive outcome. Kendrick predicts that if the ETFs are approved, there could be a demand for 2.39 to 9.15 million ETH tokens, which could translate to an estimated $15 billion to $45 billion in the first year after approval.
This influx of demand is expected to have a similar impact on the market as Bitcoin ETFs, which have seen significant inflows in line with Standard Chartered’s projections. Kendrick’s analysis suggests that Ethereum could maintain its price ratio with Bitcoin, remaining at around 5.4% for the rest of 2024.
Based on Kendrick’s assumptions, if Bitcoin reaches $150,000 by the end of 2024, Ethereum could reach a price of $8,000. This represents a 112% increase from its current price of $3,771. However, Standard Chartered’s peak target for ETH in this cycle is even higher, with a forecast of $14,000 by the end of 2025, aligning with their estimated Bitcoin price of $200,000 next year.
It is important to note that this article is for informational purposes only and should not be considered financial advice. The views expressed here are the author’s personal opinions and do not necessarily reflect those of The Crypto Basic. Readers are advised to conduct their own research before making any investment decisions, and The Crypto Basic is not responsible for any financial losses that may occur.