Standard Chartered Bank’s Head of Foreign Exchange, Geoffrey Kendrick, stated that the Ethereum spot ETF is expected to be approved and listed on May 23rd, and the price of ETH is also expected to reach $4,000.
Summary:
SEC plans to “forcefully reject” the Ethereum spot ETF? Insider: Gensler still considers ETH as a security.
Background:
Will the approval of the Ethereum spot ETF lead to a decline? Grayscale’s “3 million ETH” may trigger a sell-off wave similar to GBTC.
Table of Contents:
Standard Chartered Bank: SEC has not determined ETH as a security.
ETH will rise to $4,000 after the approval of the Ethereum ETF.
Current status of the Ethereum spot ETF application.
After the US Securities and Exchange Commission (SEC) approved the Bitcoin spot ETF, the market is optimistic that Ethereum, as the second largest cryptocurrency, will also be approved for listing by the SEC this year. Although the SEC has delayed the review of the Ethereum spot ETF applications from BlackRock and Fidelity, Standard Chartered Bank’s Head of Foreign Exchange, Geoffrey Kendrick, remains optimistic in a recent report, stating that the Ethereum spot ETF will be approved on May 23rd.
Standard Chartered Bank: SEC has not determined ETH as a security. Kendrick mentioned that the main reason for this is that the SEC has not classified Ethereum as a security in lawsuits against multiple cryptocurrency companies. Additionally, the listing of Ethereum futures contracts as regulated financial products on the Chicago Mercantile Exchange (CME) has provided support for this.
Kendrick also mentioned that Grayscale, the cryptocurrency asset management company that successfully converted its Bitcoin Trust (GBTC) into a Bitcoin spot ETF, may file another lawsuit against the SEC if the Ethereum Trust (ETHE) is rejected.
Furthermore, Kendrick predicts that the approval of the Bitcoin spot ETF will attract $50-100 billion in capital inflow into BTC and that the price of Bitcoin will surpass $100,000 by the end of this year and reach $200,000 by the end of 2025. He holds a similarly optimistic view on the trend of Ethereum, stating that if the Ethereum spot ETF is approved, the price of ETH will follow a similar trajectory as Bitcoin and reach $4,000 after the ETF approval. Kendrick also added that Ethereum will not experience a sell-off wave like Bitcoin after the ETF approval.
Lastly, Kendrick mentioned another key factor driving the rise of ETH this year, the London Hard Fork (EIP-1559).
The current status of the Ethereum spot ETF applications awaiting SEC approval includes 7 applications from BlackRock, Fidelity, Grayscale, VanEck, ARK 21Shares, Invesco/Galaxy, and Hashdex. The final approval decisions for VanEck, ARK 21Shares, and Hashdex Ethereum spot ETFs by the SEC are due in May 2024, while the other applications will be decided within the next 6-8 months.
It is worth mentioning that James Seyffart, an ETF analyst at Bloomberg, had previously stated at the beginning of the year that when the SEC approved 9 Ethereum-related futures ETFs last year, it “implicitly” recognized Ethereum as a commodity, indicating that the first Ethereum spot ETF is expected to be listed this year.
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