Standard Chartered believes SEC will approve Ethereum ETF in May

Standard Chartered expects the U.S. Securities and Exchange Commission (SEC) to give the green light to an Ethereum exchange-traded fund (ETF) by May 23, The Block reported on January 30, citing a research report.

This expectation reflects the SEC’s timeline and approach in its previous process for approving a spot Bitcoin ETF.

Classification of Ethereum

Geoffrey Kendrick, head of foreign exchange and digital asset research at Standard Chartered Bank, said that given the SEC’s previous stance on ETH, it seems likely that the Ethereum ETF will be approved.

Unlike some cryptocurrencies that have been classified as securities in legal proceedings against crypto companies, Ethereum has avoided such classification. Additionally, ETH’s existence as a regulated futures contract on CME increases the likelihood of approval.

Kendrick’s predictions go beyond mere approval, suggesting that Ethereum’s price could surge to $4,000, similar to Bitcoin’s price performance prior to ETF approval. He pointed out:

“If ETH price performance is similar to BTC price performance before the BTC ETF was approved, ETH could be trading as high as $4,000 by then.”

Ethereum ETF

The potential of an Ethereum ETF is not without nuance. Kendrick expects initial approval to focus on simple Ethereum ETFs that track the price movement of ETH. He predicts that more sophisticated products may emerge later, such as ETFs that include staking yield rewards, and draw on European models as a reference.

Additionally, Kendrick commented on Ethereum’s upcoming network upgrades (such as Dencun or Proto-Danksharding), believing that they will be beneficial to price growth. These upgrades will enhance value retention in the Ethereum ecosystem by lowering layer 2 fees and maintaining higher staking rewards.

Kendrick also maintained a positive view on the broader cryptocurrency market, including Bitcoin. His earlier predictions predicted that the price of the flagship cryptocurrency would surge to $100,000 by the end of the year and a staggering $200,000 by the end of 2025, driven by inflows into spot Bitcoin ETFs.