Bitrabo Editorial
Standard Chartered, a British multinational bank, predicts that Ethereum spot ETFs may be approved by the US Securities and Exchange Commission (SEC) soon, potentially leading to significant market inflows ranging from $15 billion to $45 billion in the first year. This influx of capital could drive Ethereum’s price towards $8,000 by the end of 2024.
Anticipated Effects of Ethereum ETF Approval
The approaching deadlines for the first round of spot Ethereum ETFs by VanEck on May 23 and Ark Invest/21Shares on May 24 have heightened expectations. Standard Chartered’s Head of FX Research and Digital Assets Research, Geoff Kendrick, expresses an 80% to 90% probability of ETF approval, estimating substantial inflows and potential price growth for Ethereum.
If approved, Kendrick suggests that Ethereum could maintain its price ratio with Bitcoin, forecasted to reach $150,000 by the end of 2024, thus leading to an $8,000 valuation for Ethereum. Furthermore, with Bitcoin projected to hit $200,000 by the end of 2025, Ethereum’s price could rise to $14,000 during the same period.
Bullish Market Sentiment Amid Growing Odds of ETF Approval
Recent optimism surrounding Ethereum ETF approvals has seen the price of Ethereum surge over 20% in the past 24 hours, surpassing the $3,600 mark and boosting its market capitalization above $450 billion.
Derivative markets like Deribit indicate strong bullish sentiment with concentrated bets on Ethereum calls exceeding $4,000 and a notable preference for a $5,000 strike price. Bloomberg analysts have increased the odds of spot ETH ETF approval to 75%, a significant jump from the previous estimation of 25%, suggesting a changing regulatory landscape.
Speculation indicates that approval may occur as soon as Wednesday, potentially paving the way for further price gains in Ethereum, according to market experts.