Anticipation Grows for SEC’s Potential Approval of Ethereum ETFs: Spotlight on ETH’s Market Impact

• The cryptocurrency market is abuzz with anticipation as the approval dates for spot Ethereum ETFs by the SEC approach.
• VanEck and Ark Invest/21Shares are up for potential approval on May 23 and May 24, respectively.
• “Standard Chartered is optimistic about the SEC’s approval of Ether ETFs this week,” says Geoff Kendrick, Head of FX Research and Digital Assets at Standard Chartered.

This article explores the potential impact of the SEC’s upcoming decision on Ethereum ETFs, including market predictions and investment implications.

What Does the Bank Expect If Approval Comes?

Geoff Kendrick of Standard Chartered estimates that the approval of spot Ethereum ETFs could attract between 2.39 and 9.15 million Ethereum in the first year, potentially amassing a market value of $15 billion to $45 billion.

Year-End Target for Ethereum is $8,000

Following potential approval, Ethereum might see a price increase similar to Bitcoin’s historical performance, possibly reaching $8,000 by the end of 2024, influenced by a projected Bitcoin rise to $200,000 by the end of 2025.

SEC Requested Amended Filings

The SEC has shown signs of progress in the Ethereum ETF approval process by requesting updated 19b-4 filings, with Fidelity responding with the necessary documentation. However, approval remains uncertain.

Key Insights

• Standard Chartered predicts a significant influx of investment into Ethereum ETFs upon approval.
• The potential approval could significantly boost Ethereum’s price, with a target of $8,000 by the end of 2024.
• The SEC’s updated filing requests indicate progress, yet the outcome is still pending.
• Market analysts have recently adjusted the probability of approval to 75%, reflecting increased optimism.

Conclusion

The impending decision by the SEC on Ethereum ETFs is pivotal, with potential to significantly influence both the investment landscape and Ethereum’s market price. Stakeholders are advised to stay informed as developments unfold.