Ether May Surge to $4,000 upon Spot ETH ETF Approval, Predicts Standard Chartered

• Ethereum Predicted to Reach $4,000 by May
• Waiting for Regulatory Approval
• Favorable Odds for Approval
• Ethereum vs Bitcoin Performance
• Lower Selling Pressure Post-ETF Approval
• First Ethereum-based ETFs in the U.S.

Ethereum Predicted to Reach $4,000 by May

Ethereum$2,315 -2.42% (ETH), the world's second-largest cryptocurrency by market capitalization, could witness a nearly 70% increase from its current value, potentially reaching $4,000 by May, according to a recent report by Standard Chartered Bank. This surge in value is anticipated to follow the likely approval of applications for spot-based exchange-traded funds (ETFs) in the U.S.

Waiting for Regulatory Approval

The report, championed by research head Geoff Kendrick, suggests an expectation for the U.S. Securities and Exchange Commission (SEC) to follow a similar pattern as with Bitcoin$42,260 -0.64% in delaying decisions regarding spot ETF applications. This would conceivably see the green light given on the final deadline, currently set for May 23. This deadline pertains to applications by asset managers VanEck and Ark/21Shares.

Favorable Odds for Approval

Despite the market currently underestimating the likelihood of approval, the report from Standard Chartered Bank sees no fundamental reason for the SEC to distinguish Ethereum from Bitcoin. The report underscores that Ethereum futures are also listed on the regulated Chicago Mercantile Exchange (CME). Additionally, Ethereum was not included among the 67 cryptocurrencies the SEC classified as securities during its legal proceedings against Ripple.

Ethereum vs Bitcoin Performance

Heading into the expected approval date on May 23, we anticipate Ethereum prices to either track or potentially outperform Bitcoin in the corresponding period, Kendrick and his team noted in the report. They pointed to Bitcoin's surge of 85% during a similar period, which saw prices rise from around $25,000 in mid-June to approximately $47,000 following the approval of spot ETFs on January 10.

Lower Selling Pressure Post-ETF Approval

The report also mentioned that Ethereum is likely to face less selling pressure post-ETF approval compared to Bitcoin. The reasoning behind this prediction is that Grayscale Ethereum Fund (ETHE) has a smaller market share of Ethereum's total capitalization compared to the Grayscale Bitcoin Fund (GBTC). Furthermore, fewer shares are held by the FTX$3.28 -5.38% bankruptcy estate.

First Ethereum-based ETFs in the U.S.

The report further suggested that the first type of Ethereum ETFs in the U.S. will likely track the spot Ethereum price and not include staking rewards.

Edited by Jonathan Stoker