Standard Chartered predicts ETF approval and $8,000 price target

Amid all the excitement and anticipation, Standard Chartered, a British cross-border bank, has done just that projected that Ethereum spot ETFs are likely to be approved by the US Securities and Exchange Commission (SEC) this week.

According to the bank, this has been approved Spotting ETFs could catalyze significant market influx, with estimates ranging from $15 billion to $45 billion in the first year alone.

Furthermore, these expected capital inflows are expected to substantially boost Ethereum’s market dynamics, which could push its price towards $8,000 by the end of 2024.

Implications of Approval of Ethereum ETFs:

Notably, Standard Chartered’s bullish outlook is supported by the approaching deadlines 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 the approval of these ETFs, estimating a probability of “80% to 90%”. Kendrick especially noted:

Once approved, we estimate that spot ETFs will generate inflows of 2.39-9.15 million ether in the first twelve months after approval. In US dollars, that amounts to about $15 billion to $45 billion. As a percentage of market cap, it is comparable to our estimates of inflows into bitcoin ETFs, which appear to be accurate.

Kendrick explained that if the spot ETH ETFs receive approval as expected, Ethereum could maintain this approval current price ratio with Bitcoin expected to reach $150,000 by the end of 2024. This projection places Ethereum at a valuation of $8,000 by the end of the year.

Furthermore, following Standard Chartered’s prediction that Bitcoin will reach $200,000 by the end of 2025, Ethereum could also see its price increase to $14,000 over the same period, reaffirming the bank’s previous price target in March.

Bullish Market Sentiment Amid Rising ETF Approval Opportunities

After the increased probability of Ethereum ETF ApprovalsThe price of Ethereum has soared, surpassing the $3,600 level for the first time since April 19.

Ethereum (ETH) price chart on TradingView
ETH price is moving sideways on the 4-hour chart. Source: ETH/USDT op TradingView.com

This represents an increase of more than 20% in the past 24 hours, pushing Ethereum’s market cap above $450 billion.

The market reaction to these developments has been overwhelmingly positive, as evidenced by derivatives markets such as Deribit concentrated betting on Ethereum calls that cross the $4,000 price barrier. The most favored strike price among these options traders is an ambitious $5,000, indicating strong bullish sentiment.

Ethereum Open Interest per strike price.
Ethereum Open Interest per strike price. | Source: It will be mocked

Notably, Bloomberg analysts have increased optimism over the adoption of spot ETH ETFs by rising unexpectedly the approval rate is 75%a significant jump from the previous estimate of 25%.

This reassessment followed reports that the SEC is rapidly changing its position, urging exchanges to quickly update their 19b-4 filings.

According to Eric Balchunas, approval would be possible come this WednesdayThis signals a major shift in the regulatory landscape and could potentially pave the way for further increases in the price of ETH.

Featured image created with DALL·E, Chart from TradingView

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