April

Standard

Amid the buzz and anticipation, Standard Chartered, a British cross-border bank, has <a href="https://www.theblock.co/post/295591/standard-chartered-ethereum-etf-approval" target="_blank" rel="noopener nofollow">projected</a> that Ethereum spot ETFs will likely be approved by the US Securities and Exchange Commission (SEC) this week. 
According to the bank, the approval of these <a href="https://bitcoinist.com/spot-ethereum-etf-odds-underestimated-coinbase/" target="_blank" rel="noopener ">spot ETFs</a> could catalyze significant market inflows, with estimates ranging from $15 billion to $45 billion in the first year alone. 
Additionally, this anticipated influx of capital is expected to substantially boost Ethereum’s market dynamics, potentially driving its price toward the $8,000 mark by the end of 2024. 
<h2 id="implications-of-ethereum-etfs-approval">Implications Of Ethereum ETFs Approval:</h2> 
Notably, the bullish outlook from Standard Chartered&nbsp;is supported by the <a href="https://bitcoinist.com/developer-ethereum-layer-2s-unregistered-msbs/" target="_blank" rel="noopener ">imminent deadlines</a> for the first round of spot Ethereum ETFs, with VanEck’s deadline on May 23 and Ark Invest/21Shares’ on May 24. 
Geoff Kendrick, Head of FX Research and Digital Assets Research at Standard Chartered Bank, expressed high confidence in approving these ETFs, estimating an “80% to 90%” probability. Kendrick particularly noted: 
<blockquote>
 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. As a percentage of market cap, it is similar to our estimates of inflows to bitcoin ETFs, which are proving accurate.
</blockquote> 
Kendrick elaborated that if the spot ETH ETFs receive approval as anticipated, Ethereum could maintain its <a href="https://bitcoinist.com/altcoin-season-ethereum-breakout/" target="_blank" rel="noopener ">current price ratio</a> with Bitcoin, which is projected to reach $150,000 by the end of 2024. This projection places Ethereum at an $8,000 valuation by the end of the year. 
Moreover, with Standard Chartered’s forecast of Bitcoin reaching $200,000 by the end of 2025, Ethereum could also see its price rise to $14,000 over the same period, reaffirming the bank’s earlier price target in March. 
<h2 id="bullish-market-sentiment-amid-rising-etf-approval-odds">Bullish Market Sentiment Amid Rising ETF Approval Odds</h2> 
Following the increased likelihood of <a href="https://bitcoinist.com/expert-slams-sec-chairman-over-ethereum-nature/" target="_blank" rel="noopener ">Ethereum ETF approvals</a>, the price of Ethereum has surged, crossing the $3,600 level for the first time since April 19. 
<img loading="lazy" decoding="async" class="size-medium" src="https://www.tradingview.com/x/XNO7CIEG/" alt="Ethereum (ETH) price chart on TradingView" width="2770" height="1496"> 
This represents a more than 20% increase in the past 24 hours, pushing Ethereum’s market capitalization above $450 billion. 
The market’s response to these developments has been overwhelmingly positive, with derivative markets like Deribit showing <a href="https://metrics.deribit.com/options/ETH" target="_blank" rel="noopener nofollow">concentrated bets</a> on Ethereum calls surpassing the $4,000 price mark. The most favored strike price among these options traders is an ambitious $5,000, indicating strong bullish sentiment. 
<img loading="lazy" decoding="async" class="wp-image-301311 size-large" src="https://bitcoinist.com/wp-content/uploads/2024/05/Screenshot-2024-05-21-at-15.37.08.png?resize=980%2C294" alt="Ethereum Open Interest By Strike Price." width="980" height="294" srcset="https://bitcoinist.com/wp-content/uploads/2024/05/Screenshot-2024-05-21-at-15.37.08.png?w=2866 2866w, https://bitcoinist.com/wp-content/uploads/2024/05/Screenshot-2024-05-21-at-15.37.08.png?w=640 640w, https://bitcoinist.com/wp-content/uploads/2024/05/Screenshot-2024-05-21-at-15.37.08.png?w=768 768w, https://bitcoinist.com/wp-content/uploads/2024/05/Screenshot-2024-05-21-at-15.37.08.png?w=980 980w, https://bitcoinist.com/wp-content/uploads/2024/05/Screenshot-2024-05-21-at-15.37.08.png?w=1536 1536w, https://bitcoinist.com/wp-content/uploads/2024/05/Screenshot-2024-05-21-at-15.37.08.png?w=2048 2048w, https://bitcoinist.com/wp-content/uploads/2024/05/Screenshot-2024-05-21-at-15.37.08.png?w=750 750w, https://bitcoinist.com/wp-content/uploads/2024/05/Screenshot-2024-05-21-at-15.37.08.png?w=1140 1140w" sizes="(max-width: 980px) 100vw, 980px" data-recalc-dims="1"> 
Notably, Bloomberg analysts heightened optimism about the approval of spot ETH ETFs by unexpectedly increasing<a href="https://twitter.com/EricBalchunas/status/1792636523050906102?ref_src=twsrc%5Etfw" target="_blank" rel="noopener nofollow">&nbsp;the approval odds to 75%</a>, a significant jump from the earlier 25% estimation. 
This reassessment followed reports that the SEC is rapidly changing its stance, with exchanges being urged to update their 19b-4 filings swiftly. 
<blockquote class="twitter-tweet"> 
 Update: <a href="https://twitter.com/JSeyff?ref_src=twsrc%5Etfw" target="_blank" rel="noopener nofollow">@JSeyff</a> and I are increasing our odds of spot Ether ETF approval to 75% (up from 25%), hearing chatter this afternoon that SEC could be doing a 180 on this (increasingly political issue), so now everyone scrambling (like us everyone else assumed they’d be denied). See… <a href="https://t.co/gcxgYHz3om" target="_blank" rel="noopener nofollow">https://t.co/gcxgYHz3om</a> 
 — Eric Balchunas (@EricBalchunas) <a href="https://twitter.com/EricBalchunas/status/1792636523050906102?ref_src=twsrc%5Etfw" target="_blank" rel="noopener nofollow">May 20, 2024</a>
</blockquote> 
According to Eric Balchunas, approval could <a href="https://bitcoinist.com/us-sec-set-to-make-decision-on-ethereum-spot-etfs/" target="_blank" rel="noopener ">come this Wednesday</a>, signaling a major shift in the regulatory landscape and potentially setting the stage for further gains in ETH’s price. 
Featured image created with DALL·E, Chart from TradingView

Ethereum’s Massive Surge Imminent: Standard Chartered Predicts ETF Approval And $8,000 Price Target

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