Standard Chartered Forecasts $4,000 ETH Price if SEC Approves Ethereum ETFs in May

Ethereum could see a major boost in its value if the U.S. Securities and Exchange Commission (SEC) approves exchange-traded funds (ETFs) for the digital asset in May, according to a report by Standard Chartered.

Standard Chartered, a British multinational banking and financial services company, has forecasted that the SEC is likely to greenlight Ethereum ETFs in May, Bloomberg reported on Wednesday. The bank cited the growing institutional demand and regulatory clarity for Ethereum as the main factors behind its bullish prediction.

Ethereum ETFs are investment products that track the price of Ethereum and trade on regulated exchanges, allowing investors to gain exposure to the cryptocurrency without having to buy or store it directly. ETFs are widely seen as a catalyst for mainstream adoption and increased liquidity for the crypto industry.

Standard Chartered expects that the approval of Ethereum ETFs will significantly impact the market value of the cryptocurrency, projecting a surge to $4,000 by May 23, the final deadline for ETF applications from VanEck and Ark 21Shares. The current trading price of Ethereum stands at approximately $2,327, up 1% in 24 hours, with a market cap nearing $285 billion.

A Mixed Bag of Opinions

Despite the optimistic outlook from Standard Chartered, the SEC’s impending decision on Ethereum ETFs is met with varying opinions from analysts and legal experts. Some have voiced skepticism over a guaranteed positive outcome, while others have expressed cautious optimism.

Jake Chervinsky, a lawyer and general counsel at Compound Labs, stressed the erroneous assumption that the SEC’s past decisions on Bitcoin ETFs will automatically translate to Ethereum. He tweeted on Tuesday that Ethereum is “a very different asset” from Bitcoin, and that the SEC may have different concerns and questions about its legal status, security, and market structure.

Scott Johnsson, a former SEC attorney and partner at Kobre & Kim, also cast doubt on the likelihood of Ethereum ETF approvals in May. He told Bloomberg that the SEC is still in the process of reviewing the applications and gathering public comments, and that it may extend the review period or ask for additional information from the applicants.

On the other hand, some analysts have expressed cautious optimism about the prospects of Ethereum ETFs. James Seyffart, an ETF analyst at Bloomberg Intelligence, said that the SEC’s recent approval of a Bitcoin futures ETF, which began trading on Tuesday, could pave the way for Ethereum ETFs as well. He said that the SEC may be more comfortable with approving ETFs based on futures contracts, rather than those that hold the underlying cryptocurrencies directly.

Similarly, Matt Hougan, chief investment officer at Bitwise Asset Management, said that the SEC’s approval of a Bitcoin futures ETF was a “game-changer” for the crypto industry, and that it could open the door for other crypto ETFs, including those for Ethereum. He said that the SEC has shown a willingness to work with the crypto industry and address its concerns, and that he expects more crypto ETFs to be approved in the near future.

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