Standard Chartered Bank’s Head of Forex and Digital Assets Research predicts that the US SEC will approve Ethereum exchange-traded funds (ETFs) by May 23.
Drawing parallels with the SEC’s approach to Bitcoin ETFs, where initial rejections were followed, Geoffrey Kendrick, the expert behind the forecast, believes Ethereum’s price will rise to $4,000 following the ETF approval.
This optimism comes from Ethereum’s unique classification by the SEC, which avoids the security label, and its listing on the Chicago Mercantile Exchange.
Kendrick’s optimistic outlook extends beyond ETH, as he sees BTC reaching $100,000 by the end of the year and $200,000 by 2025.
Despite historical price drops following ETF approvals, Kendrick anticipates more consistent gains for Bitcoin in the coming years.
Addressing concerns about a potential price drop following ETF approval, Kendrick suggests that Ethereum may be more resilient than BTC.
The reasoning is based on the size difference between Grayscale’s Ethereum Trust and its Bitcoin counterpart, which suggests that Ethereum’s market may be less affected by potential sell-offs.
While Kendrick believes the SEC will initially approve simpler Ethereum ETFs, he expects staking yield ETFs to follow suit. However, he admits that the current staking rewards are insignificant due to the high associated fees.
Kendrick adds to the positive outlook by mentioning an upcoming Ethereum upgrade that could positively impact Ether’s price. The upgrade aims to reduce fees, making Ethereum more competitive.