- Amid the buzz and anticipation, Standard Chartered, a British cross-border bank, has projected that Ethereum spot ETFs will likely be approved by the US Securities and Exchange Commission (SEC) this week.
- According to the bank, the approval of these spot ETFs could catalyze significant market inflows, with estimates ranging from $15 billion to $45 billion in the first year alone.
- “This anticipated influx of capital is expected to substantially boost Ethereum’s market dynamics, potentially driving its price toward the $8,000 mark by the end of 2024,” said Geoff Kendrick, Head of FX Research and Digital Assets Research at Standard Chartered.
Explore the potential impact and market dynamics of the anticipated approval of Ethereum spot ETFs by the SEC, which could significantly influence Ethereum’s valuation and the broader crypto market.
Implications Of Ethereum ETFs Approval:
Notably, the bullish outlook from Standard Chartered is supported by the imminent deadlines for the first round of spot Ethereum ETFs, with VanEck’s deadline on May 23 and Ark Invest/21Shares’ on May 24. Geoff Kendrick expressed high confidence in approving these ETFs, estimating an “80% to 90%” probability.
Market Impact and Future Projections:
After approval, spot ETFs are expected to drive inflows of 2.39-9.15 million ether in the first 12 months. This could maintain Ethereum’s current price ratio with Bitcoin, projected to reach $150,000 by the end of 2024, placing Ethereum at an $8,000 valuation by year-end. Additionally, with Bitcoin’s forecasted rise to $200,000 by the end of 2025, Ethereum could see its price rise to $14,000 over the same period.
Bullish Market Sentiment Amid Rising ETF Approval Odds
Following the increased likelihood of Ethereum ETF approvals, the price of Ethereum has surged, crossing the $3,600 level for the first time since April 19. This represents a more than 20% increase in the past 24 hours, pushing Ethereum’s market capitalization above $450 billion. The market’s response has been overwhelmingly positive, with derivative markets like Deribit showing concentrated bets on Ethereum calls surpassing the $4,000 price mark.
Conclusion
The potential approval of Ethereum spot ETFs represents a significant milestone for cryptocurrency markets, promising substantial inflows and possibly setting new price benchmarks for Ethereum. Investors and market watchers are advised to keep a close watch on developments as they unfold, potentially reshaping the investment landscape for Ethereum and other digital assets.
