Standard Chartered Bank foresees Ethereum spot ETF by May 23

The crypto community has eagerly awaited the debut of the first Bitcoin (BTC) spot exchange-traded fund (ETF) in the United States for years. Following its successful launch, speculation has shifted towards the most prominent altcoin in the space, Ethereum (ETH). Rumors have it that the Ethereum Spot ETF could be introduced sooner than anticipated. Standard Chartered Bank even predicts that the Securities and Exchange Commission (SEC) will grant approval for the fund on May 23.

Approval is expected only for simple Ethereum ETFs that replicate ether price movements, with ETFs that include staking yields anticipated to be approved on a later date. Drawing parallels to the price surge experienced by Bitcoin (BTC), the bank anticipates a substantial rise in Ethereum’s value following a successful ETF launch. The bank projects that the cryptocurrency could reach a milestone value of $4,000, representing its highest value in over two years and signifying an impressive 71% increase from its current price.

Geoffrey Kendrick, head of forex and digital assets research at Standard Chartered, is generally optimistic about crypto price trends. While the whole crypto market experienced a correction in the last few weeks, Kendrick is predicting that significant inflows will get back into the market, resulting in significant price increases for Bitcoin and altcoins.

Regulatory hurdles ahead

However, the road to approval is likely to be bumpy. Similar to the approach taken for the Bitcoin Spot ETF, the SEC’s strategy will start with initial rejections before concluding on an approval. An edge the number two crypto has over other altcoins, as noted by the bank, is its regulatory status. The SEC has not classified Ethereum as a security in its legal proceedings. Additionally, Ethereum has been recognized through regulated futures contracts on the Chicago Mercantile Exchange (CME), further solidifying its standing in the regulatory landscape.

In line with the expectations the SEC has already delayed its decision on Grayscale Investments’ application for an Ethereum ETF, extending the review process that affects other asset managers like BlackRock and Fidelity. In the meantime the SEC aims to gather insights not only on the ETF’s structure but also on Ethereum futures products, indicating a deep dive into the complexities of crypto investment products. With a 21-day window for public feedback and a 35-day period for rebuttals, the SEC demonstrates a methodical approach to understanding diverse viewpoints.


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