Standard Chartered Anticipates Imminent SEC Green Light for Spot Ethereum ETFs

The U.S. Securities and Exchange Commission (SEC) is under intense scrutiny from the financial community as it gets closer to important deadlines for making decisions about spot ether exchange-traded funds (ETFs). There has been a lot of interest in the proposals from Vaneck and Ark Invest/21Shares, which are scheduled for assessment on May 23 and 24, respectively.

Geoff Kendrick, Head of FX and Digital Assets Research at Standard Chartered, has significantly increased his confidence in the SEC’s approval of spot Ethereum ETFs. According to The Block, Kendrick now feels “80% to 90%” sure that the approval will come this week. This marks a substantial shift from his April forecast, when he doubted the SEC would green-light these ETFs in May. Kendrick elaborated on the impact, stating, “After approval, we estimate that spot ETFs will drive inflows of 2.39-9.15 million ether in the first 12 months after approval … In U.S. dollar terms, that equates to roughly $15 billion to $45 billion.”

Kendrick also predicts ether will keep its price ratio of 5.4% compared to bitcoin throughout 2024. If Bitcoin hits $150,000 by year-end, ether could reach $8,000. “Given that we now see bitcoin reaching the $150,000 level by end-2024, this would imply a level of $8,000 for ether,” he noted.

The market’s expectations are also shaped by larger trends and potential regulatory changes. The possible reelection of former President Donald Trump is viewed positively for the crypto sector. Many believe his administration would create a more favorable regulatory environment, encouraging further cryptocurrency adoption and price increases. Kendrick commented earlier this month, “We think that a second Trump administration would be broadly positive via a more supportive regulatory environment.”