A development that could be another landmark decision for the digital asset market, the US Securities and Exchange Commission (SEC) could approve Spot Ethereum ETFs in May, according to Standard Chartered Bank. Indeed, they predict that the approval could come on May 23rd, according to a report from The Block.
Additionally, Standard Chartered has forecasted a $4,000 target for Ethereum if approval is granted. Specifically, it notes that the potential value surge if the asset could mimic what occurred with Bitcoin (BTC) before its Spot ETF approval in the United States. Overall, the bank said that the process for Ethereum’s ETF approval will mirror Bitcoin’s journey at the tail end of last year.
Also Read: SEC Delays BlackRock Spot Ethereum ETF
Standard Chartered Bank Predicts Spot Ethereum ETF Approval in May
The digital asset industry experienced a landmark development just ten days into the new year. After months of speculation, the SEC greenlit the creation of 11 Spot Bitcoin ETFs in the United States. Naturally, that approval led many market participants to ask what next. What other asset could receive the same coveted approval that BTC had witnessed?
Well, according to one prominent bank, Ethereum could well be on its way. Specifically, the SEC is predicted to approve Spot Ethereum ETFs in May, according to Standard Chartered Bank.
“We expect pending applications or ETH US spot ETFs to be approved on May 23, the final deadline for the first of the ETFs under consideration- the equivalent date to Jan. 10 for BTC ETFs,” says Geoffrey Kendrick, the head of Standard Chartered Banks foret and digital assets research.
Also Read: Ethereum: BlackRock CEO Larry Fink Sees Value in ETH ETF
Moreover, Kendrick noted that ETH could follow a similar pre-approval trajectory that Bitcoin enjoyed. Although BTC has failed to surge in value since approvals were issued, the expectation of such approval had a massive impact on its price. Subsequently, Kendrick predicts that Ethereum “could trade as high as $4,000” by the approval time.
Kendrick expects approvals because the SEC has not categorized ETH as a security in its legal actions against digital asset firms. Moreover, ETH is listed as a regulated futures contract on the Chicago Mercantile Exchange. Therefore, increasing the potential for approval.
Additionally, Kendrick notes that Grayscale is seeking to convert its ETH trust into an ETF. Subsequently, a denial of that application will “likely lead to another appeal by Grayscale.” Ultimately, Kendrick said they “see no fundamental reason,” the SEC and the CME would view Ethereum differently.