Ethereum (ETH) Could Surge by Nearly 70% to $4,000 in Anticipation of US Regulatory Approval for Ethereum Spot ETFs
According to a report by Standard Chartered Bank, Ethereum, the second-largest cryptocurrency by market value, is expected to experience a significant increase. Geoff Kendrick, the head of research at StanChart, and his team predict that this surge will be driven by the likely approval of Ethereum Spot ETFs by the US SEC.
“No Reason” for SEC Rejection?
The British bank believes that the market is currently underestimating the chances of approval but sees “no fundamental reason” for the SEC to treat ETH differently from Bitcoin. StanChart highlights that ETH futures contracts are traded on the regulated Chicago Mercantile Exchange and that the SEC did not include ETH among the 67 cryptocurrencies it considers securities in its legal battle against Ripple.
Analysts at StanChart expect the SEC to delay its decisions on Ethereum Spot ETF applications until it approves the first final deadline, as was the case with Bitcoin. Hence, the date of May 23 is considered as a possible approval date, serving as the final deadline for asset managers VanEck and Ark/21Shares.
Ethereum Ready to Outperform Bitcoin?
As we approach the anticipated approval date on May 23, we expect ETH prices to follow or exceed those of Bitcoin during the comparable period,” state the StanChart analysts.
– Analysts at StanChart
The report suggests that the surge in ETH could match or even surpass that of BTC prior to the expected approval date. Bitcoin experienced an 85% increase, rising from around $25,000 to approximately $47,000 upon the approval of spot ETFs on January 10.
