A renowned researcher at Standard Chartered has conveyed optimism regarding the approval of the first round of Ethereum spot ETFs by the U.S. SEC. It is projected that the approval will lead to a market value of $8,000 for ETH.
Recently, there has been growing anticipation surrounding the SEC’s approval of Ethereum ETFs, largely due to significant developments that have taken place as the deadline for pending applications approaches.
For instance, the decision on VanEck’s Ethereum spot ETF is expected to be made in two days, while Ark Invest’s application deadline closely follows on May 24.
In the meantime, it has been reported that the U.S. regulator has requested updates to 19b-4 filings from exchanges. Sources familiar with the matter suggest that the SEC made this request on Monday.
Prominent market commentators interpret the SEC’s demand for updated documents as a positive indication that approval is imminent. Bloomberg analysts Eric Balchunas and James Seyffart have adjusted their likelihood projection from a pessimistic 25% to a significant 75%, reflecting this sentiment.
Geoff Kendrick, Head of Digital Assets Research at Standard Chartered, expressed during a recent interview his belief that approval will be granted this week with an 80% to 90% certainty.
Kendrick predicts that the approval of the ETFs could lead to a demand for 2.39 to 9.15 million ETH tokens, which would translate to an estimated $15 billion to $45 billion in the first year post-approval.
This influx of demand is expected to have a similar impact on the market as Bitcoin ETFs, aligning with Standard Chartered’s projections. Kendrick’s analysis suggests that Ethereum could maintain its price ratio with Bitcoin, remaining at the current 5.4% for the remainder of 2024.
According to Kendrick, this would imply an ETH price of $8,000 assuming Bitcoin reaches $150,000 by the end of 2024. With ETH currently trading at $3,771, the $8,000 target suggests a further 112% increase in price.
However, $8,000 is not the peak target for ETH in this cycle according to Standard Chartered. The bank previously forecasted ETH to rise to $14,000 by the end of 2025, aligning with its estimated Bitcoin price of $200,000 next year.
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