Standard Chartered executive Geoffrey Kendrick anticipates the approval of a spot Ethereum exchange-traded fund (ETF) by the Securities and Exchange Commission (SEC) on May 23. Drawing parallels with the SEC’s approach to Bitcoin ETFs, Kendrick suggests that if Ethereum (ETH) follows a similar pre-approval trajectory to Bitcoin, it could potentially reach $4,000.
Kendrick points out that the SEC’s non-classification of ETH as security and the prior approval of futures ETFs contribute to the likelihood of spot Ethereum ETF approval. He expects the SEC to adopt a strategy akin to the one used for Bitcoin ETFs, involving initial rejections and eventual approval by the May 23 deadline.
In a report from Standard Chartered Bank, Kendrick notes, “If ETH prices perform similarly to how BTC prices performed in the lead-up to BTC ETF approval, ETH could trade as high as $4,000 by then.” He emphasizes that the SEC’s lack of categorization of ether as a security and its listing as a regulated futures contract on the Chicago Mercantile Exchange strengthen the case for approval.
Kendrick expresses optimism about cryptocurrency trends, reiterating earlier predictions that spot Bitcoin ETFs could attract $50-100 billion in inflows this year, potentially driving the Bitcoin price to $100,000 by year-end and $200,000 by 2025. He underscores that Ether is less prone to post-approval selling compared to Bitcoin, citing the Grayscale Ethereum Trust’s smaller share of the total ETH market cap.
Ethereum’s Future: Dencun or Proto-Danksharding Upgrade
Looking ahead, Kendrick expects simple Ethereum ETFs that replicate ETH price movements to gain approval on May 23. He suggests that ETFs incorporating staking yield rewards may be introduced later, with Europe already hosting such offerings, like AETH [21Shares Ethereum Staking ETP].
Commenting on Ethereum’s Dencun or Proto-Danksharding upgrade, Kendrick believes it will positively impact the Ether price. The upgrade is expected to enhance the value captured within the Ether ecosystem by reducing Layer 2 fees and maintaining higher staking rewards.
Nevertheless, experts in the crypto space hold varying opinions on the imminent approval of a spot in Ethereum ETF, with Kendrick maintaining an optimistic outlook for the cryptocurrency market.
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