Standard Chartered Bank has predicted that the U.S. Securities and Exchange Commission (SEC) will approve Ethereum ETF spot funds before May 23, as reported by The Block on January 30, citing a research report.
This expectation mirrors the timeline and approach previously seen in the SEC’s approval process for Bitcoin ETF spot funds. According to Geoffrey Kendrick, Head of Digital Asset and Forex Research at Standard Chartered, the approval of Ethereum ETF spot funds seems to be based on the SEC’s previous stance on ETH.
Unlike some specific cryptocurrencies that have been classified as securities in legal actions against crypto companies, Ethereum has avoided such classification. Additionally, ETH’s presence as a future contract is established on the Chicago Commodity Exchange, which is expected to bolster its chances of approval.
Kendrick’s prediction goes beyond mere approval, suggesting that the price of Ethereum could surge to $4,000, similar to Bitcoin’s price performance before its ETF approval. He noted:
“If ETH price behaves similarly to how BTC price acted before the Bitcoin ETF approval, ETH could trade as high as $4,000 at that time.”
The potential for Ethereum ETF spot funds is not without nuances. Kendrick predicts that initial approvals will focus on simple Ethereum ETFs to track ETH price fluctuations. He anticipates that more complex services, such as ETFs combining staking rewards, may emerge later based on similar models that have appeared in Europe.
Furthermore, Kendrick comments on upcoming Ethereum network upgrades, such as DeCun or Proto-Danksharding, considering them beneficial for price appreciation. These upgrades are expected to enhance the sustainability of the Ethereum ecosystem by reducing layer-2 fees and maintaining higher staking rewards.
Kendrick also maintains a positive outlook for the broader cryptocurrency market, including Bitcoin. His previous predictions foresaw the price of the leading cryptocurrency surging to $100,000 by year-end and a staggering $200,000 by the end of 2025, driven by inflows into Bitcoin ETF spot funds.