Geoff Kendrick, the top analyst at Standard Chartered, is placing a significant bet on the U.S. Securities and Exchange Commission (SEC) approving Ethereum exchange-traded funds (ETFs) by the end of this week. If this happens, it could result in billions of dollars flowing into Ether within the first year alone, potentially driving its price up to $8,000 by the end of 2024.
The SEC’s decision is expected to come soon, with key deadlines for spot ETH ETF applications from VanEck on May 23 and Ark Invest-21Shares on May 24. This timing aligns perfectly with Kendrick’s high confidence level, estimating an 80% to 90% chance of regulatory approval for these ETFs.
If Kendrick’s prediction is accurate, it will have significant financial implications. This influx of capital into Ethereum mirrors the impact seen with Bitcoin ETFs, validating Kendrick’s projections. Additionally, Kendrick believes that if spot Ethereum ETFs are approved, Ether could keep up with Bitcoin. With Bitcoin projected to reach $150,000 by the end of 2024, the value of Ether could skyrocket to $8,000, maintaining the current 5.4% price ratio between the two cryptocurrencies.
Kendrick’s forecasts extend beyond 2024, as he anticipates even higher peaks for both Bitcoin and Ethereum by the end of 2025. According to Standard Chartered’s estimates, Bitcoin could reach $200,000, implying an Ethereum price of $14,000. These projections align with the bank’s previous targets for Ethereum, reaffirming their optimistic outlook on the leading altcoin.
The price of Ether experienced a surge on Monday, May 20, reflecting increased optimism within the community due to the anticipation of ETF approval. This surge also lifted other major cryptocurrencies, paving the way for bullish market sentiment. Acclaimed Bloomberg analysts James Seyffart and Eric Balchunas share this sentiment, raising their odds of spot ETH ETF approval to 75%, up from a mere 25%.
In preparation for the SEC’s decision on Ethereum ETFs, issuers have been strategizing. Fidelity Investments has revamped its S-1 application to better align with the SEC’s approval criteria, particularly regarding the staking of Ether tokens that will underpin the product. Grayscale, on the other hand, has filed an updated 19b-4 for its Ethereum Mini Trust, believing that its approval will benefit current ETHE shareholders. This would allow them to maintain the same exposure with the added advantage of a lower fee spread across both products. However, James Seyffart does not expect this initial filing for Grayscale’s mini Ethereum trust to be included in the first wave of potential approvals.