Standard Chartered Forecasts SEC Approval for Ether ETFs, Spurs Cryptocurrency's Rise
Summary:
Standard Chartered predicts the SEC will greenlight Ether ETFs this week, despite previous doubts. The financial institution anticipates, if approved, market inflows into the Ether spot ETF might rise to 2.39-9.15 million Ether, or $15–45 billion, in its first year. This estimate is similar to their earlier Bitcoin ETF projections. Amid growing potential for the Ethereum ETF, the cryptocurrency has hit a new multi-week high of over $3,800.
In an expected turn of events, the multinational banking and financial services company, Standard Chartered, with more than $800 billion in managed assets, predicts that the U.S. Securities and Exchange Commission (SEC) is set to greenlight spot Ether exchange-traded funds (ETFs) in the coming week. There is a series of impending deadlines fast approaching for Ether (ETH) spot ETFs. The first due date is May 23 for the VanEck ETF application, followed by a May 24 cut-off for ARK Invest/21Shares. Despite previously hinting that the May approval might not go through, the financial powerhouse has changed its stance. Geoff Kendrick, Standard Chartered's head of foreign exchange and digital assets research, stated their belief that there's an 80% to 90% chance the SEC will give the nod to Ether ETFs by the week's end. Predicted market inflows into the Ether spot ETF would see it grow from 2.39-9.15 million Ether, or about $15 billion to $45 billion, in its first year of approval, according to Kendrick. Kendrick noted that these figures closely resembled their earlier Bitcoin ETF estimations. With projections of Bitcoin reaching heights of $150,000 owing to ETF inflows, Kendrick also anticipates ETH to follow suit and achieve around $8,000 by the end of its cycle. Several industry experts have revised their perspectives after the SEC recently asked prospective Ether ETF exchanges to revise their 19b-4 applications before this week's deadline. This request, due to the ongoing securitization debate, has significantly shifted the sentiment of industry observers who were earlier almost certain the ETH ETF would be denied. On the eve of the final deadline, Bloomberg ETF analyst Eric Balchunas, who had previously reduced the probability of approval to 25%, now elevates it to 75%. Furthermore, following the SEC's request, Fidelity has submitted a modified proposal affirming that the ETH they manage for the ETF will not be staked. Amid increasing prospects for the Ether ETF, the speculation market has boosted returns for the world's second-largest cryptocurrency into two-figure percentages, marking a new multi-week high of over $3,800.
Published At
5/21/2024 3:44:52 PM
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