2024-01-31 15:39:43
British bank Standard Chartered expects the SEC to treat spot Ether ETF filings in the same way as bitcoin ETFs, and may even expect approval as early as May 23.
Ether ETH Price , the second largest cryptocurrency by market value. The price of ETH could rise nearly 70% from current levels and reach $4,000 by May, according to analysts. This may include the approval of instant exchange-traded funds (ETFs). If the submissions receive official approval in the United States, it can generate significant demand, which will drive up the exchange rate. This is stated in the report of the British Chartered Bank on Tuesday.
The British bank is betting on the rise of ETH
Led by Research Manager Geoff Kendrick Standard Chartered analysts expect that, that the US Securities and Exchange Commission, the SEC, is delaying its decisions on spot ETF filings for the first time, just as it did with Bitcoin. After that, however, it finally gives the green light at the end of the first final deadline. This deadline now expires on May 23. Ether ETFs submitted by asset managers VanEck and Ark/21Shares may receive approval at that time.
According to the report, the market is currently underestimating the chances of approval. But the bank sees no “fundamental reason” for the SEC to treat Ether differently than Bitcoin. He pointed out that ETH futures are also listed on the regulated Chicago Mercantile Exchange (CME) and that the SEC did not include ETH among the 67 cryptocurrencies that the agency classified as securities during its legal battle against Ripple.
“As we approach the May 23 approval date, we expect ETH prices to follow or even surpass Bitcoin in terms of price movement,” Kendrick and his team wrote.
BTC is up 85% from $25,000 in mid-June, the moment asset management giant BlackRock filed for the ETF. From there, the price rose to roughly $47,000 when spot ETFs were approved on January 10.
The report also said that ETH will face less selling pressure after the approval of a possible ETF than BTC did. The reason behind this is that the market share of the Grayscale Ethereum Fund (ETHE) is smaller than the market capitalization of Ether. In addition, there are even fewer shares in the possession of the bankruptcy trustee of FTX.
Bitcoin fell as low as $38,500 last week from a high of $49,000 on January 11. Market watchers blamed the $5 billion outflow of GBTC for the drop. The British bank also added in the report that the first type of ether ETFs in the US will likely track the spot ETH price. In addition, they will not contain staking rewards.
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