Ethereum ETFs: Standard Chartered Bank Expects Approval on May 23rd

After the green light for Bitcoin ETFs, the US Securities and Exchange Commission (SEC) will also approve Ethereum ETFs. Standard Chartered Bank expects this and is therefore setting the price target for Ethereum at $4,000.

Bitcoin ETFs have been traded on traditional stock exchanges in the USA for 20 days – now investors are looking at a possible comparable scenario with Ethereum (ETH), the number two cryptocurrency. Standard Chartered Bank is already committed and predicts that the responsible US Securities and Exchange Commission (SEC) will approve applications for Ethereum ETFs on May 23rd. The analysts are quoted by the business news agency Bloomberg, among others.

They assume that the SEC will base its approval process for Ethereum ETFs on that for Bitcoin ETFs. Bitcoin Futures ETFs initially came onto the market there before the SEC gave up its blockade. Ethereum is already listed as a future ETF in the USA, now it’s about ETFs that are based on the prices for ETH on the spot market. Standard Chartered Bank’s second argument: In contrast to many other altcoins, the SEC has not yet included Ethereum in the list of cryptocurrencies for which the authority wants to classify it as securities.

The experts continue to write that May 23rd is the predictable approval date for Ethereum ETFs because that is when the SEC’s decision-making deadlines for applications from VanEck and Ark 21Shares expire.

They also refer to the asset manager Grayscale, which has applied to convert its closed Ethereum fund into an ETF. When Grayscale initially received rejection from the SEC for its comparable application regarding Bitcoin, it was a court ruling in August 2023 that forced the stock market supervisors to rethink.

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Prediction: Ethereum ETFs will drive ETH to $4,000 beforehand

Standard Chartered Bank is also venturing back into the field of price forecasting. BTC had rallied ahead of the approval of Bitcoin ETFs and analysts expect this dynamic to be repeated for Ethereum. Therefore, they set the price target for Ethereum at $4,000 towards May 23rd. For comparison: ETH is currently trading at a good $2,300.

However, the analysts have identified a difference in the parallels between Bitcoin and Ethereum ETFs. In the case of Bitcoin, there was noticeable price pressure on BTC in the first few weeks of trading due to sales by the Grayscale ETF. But Grayscale held 3.1 percent of all BTC at the time Bitcoin ETFs were approved; for Ethereum it will only be 2.2 percent of all ETH, according to the report.

Conclusion: Are Ethereum ETFs up in the air?

By far not all market participants are as optimistic about Ethereum ETFs as Standard Chartered Bank. But in the crypto scene, people mostly want to look forward and are counting on Ethereum ETFs to attract new investors and ensure price increases for ETH through capital inflows.

Investors like you should definitely put May 23rd in the calendar as the predictable deadline for the SEC decision on Ethereum ETFs.

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