Geoffrey Kendrick of Standard Chartered Bank predicts the SEC’s approval of U.S. Ethereum ETFs by May 23.
Standard Chartered anticipates a similar pattern for #Ethereum ETFs as witnessed with #Bitcoin ETFs, initially facing rejections followed by eventual approval by the SEC.
Geoffrey Kendrick, head of forex and digital assets research at the bank, forecasts that Ethereum ETFs will likely be authorized in the U.S. by late May. Drawing parallels to the Bitcoin ETF scenario, Kendrick suggests that the excitement surrounding this development could propel Ethereum's (ETH) value to $4,000.
Kendrick's optimism is partly based on the SEC's historical stance, which hasn’t classified Ether as a security in past legal proceedings. Furthermore, Ether is already being traded as a future on the Chicago Mercantile Exchange.
Kendrick mentioned Grayscale's intention to transform its Ethereum trust into an ETF. He believes that even if this application is initially denied, an appeal would likely follow, citing no substantial grounds for the SEC to treat Ethereum differently. His general positivity extends to the broader #cryptocurrency market, with predictions of Bitcoin reaching $100,000 by the end of the year and $200,000 by 2025. Kendrick attributes these potential milestones to the continuous investment in Bitcoin ETFs.
After the approval of Bitcoin ETFs, there was a minor dip in Bitcoin's price, attributed to withdrawals from the Grayscale Bitcoin Trust. However, Bitcoin has since recovered and is currently valued at approximately $43,540. Kendrick posits that Ethereum is unlikely to experience a similar decline in price following ETF approval, given that the Grayscale Ethereum Trust constitutes a smaller portion of the Ethereum market compared to the role of Grayscale’s Bitcoin Trust in Bitcoin's market.
Kendrick anticipates that on May 23, the SEC will sanction basic Ethereum ETFs that mirror Ethereum's market price. He also notes the possibility of future ETFs that generate additional revenue through staking, a concept already in practice in Europe.
Furthermore, Kendrick discusses imminent upgrades to Ethereum, suggesting these improvements will enhance Ethereum's competitiveness and sustain higher staking rewards over an extended period. He believes these factors will positively impact Ethereum’s market value.
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