Geoffrey Kendrick, a seasoned analyst at Standard Chartered Bank, has projected a significant milestone in the cryptocurrency arena with the U.S. Securities and Exchange Commission (SEC) poised to approve Ethereum exchange-traded funds (ETFs) by the 23rd of May. This anticipated move signals a burgeoning interest and potential for Ethereum’s integration into mainstream investment portfolios.
Ethereum ETF: A Path Similar to Bitcoin’s
Standard Chartered sees a pattern emerging for Ethereum that mirrors the earlier trajectory of Bitcoin ETFs. Initial setbacks were followed by eventual approval, suggesting a similar outcome for Ethereum ETFs. Kendrick draws on this parallel, predicting not only approval but also a surge in Ethereum’s price to potentially $4,000 as the event draws near, propelled by investor anticipation.
The SEC’s Stance on Ether
Kendrick’s optimism is partly rooted in the SEC’s historical treatment of Ether. The regulatory body has not classified Ether as a security, which bodes well for its ETF prospects. Additionally, Ether futures are already being traded on the Chicago Mercantile Exchange, indicating a level of acceptance that could smooth the way for an ETF.
Grayscale’s Ethereum Trust: A Key Player
Grayscale, which currently operates an Ethereum trust, is looking to transition it into an ETF. Kendrick notes that any initial denials are likely to be met with appeals, underscoring the firm’s commitment to this evolution and the lack of a compelling reason for the SEC to differentiate Ethereum from other cryptocurrencies that have gained ETF status.
Cryptocurrency Valuations: A Bullish Outlook
Not limited to Ethereum, Kendrick’s bullish views extend to the broader cryptocurrency market. He posits that Bitcoin could reach $100,000 by the end of the year and soar to $200,000 by 2025. These projections are supported by the expectation of sustained investment flow into cryptocurrency ETFs.
Post-Approval Price Movements
Contrary to Bitcoin’s slight price dip following its ETF approval, Kendrick anticipates that Ethereum will maintain its price stability post-ETF approval. He attributes this to the Grayscale Ethereum Trust’s relatively smaller impact on the Ethereum market compared to the Grayscale Bitcoin Trust’s influence on Bitcoin.
The Future of Ethereum ETFs and Upgrades
Kendrick foresees the initial approval of basic Ethereum ETFs that track the asset’s price. He also hints at the possibility of more complex ETFs that could incorporate earnings from staking, similar to products already available in Europe. Furthermore, he touches on Ethereum’s impending upgrades, which he believes will enhance its competitiveness and sustain high staking rewards, ultimately benefiting Ethereum’s market value.
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