Upcoming SEC Approval for Spot Ethereum ETFs in May: A Standard Chartered Report

• Spot Ethereum ETFs May Receive Approval from US SEC in May, Standard Chartered Bank Forecasts
• Recent Landmark Developments in the Digital Asset Industry
• Ethereum's Potential On The Horizon
• Why Ethereum Could Get the Green Light

Spot Ethereum ETFs May Receive Approval from US SEC in May, Standard Chartered Bank Forecasts

In what might be another critical turning point for the digital asset market, Standard Chartered Bank has projected that the US Securities and Exchange Commission (SEC) may approve Spot Ethereum$2,315 -2.42% ETFs in May. This forecast is based on a report from The Block, which suggests the approval might occur on May 23rd.

Furthermore, Standard Chartered predicts a potential $4,000 value for Ethereum should the approval be granted. This prediction is based on the hypothesis that Ethereum's value could replicate the price increase experienced by Bitcoin$42,260 -0.64% (BTC) in the run-up to its Spot ETF approval in the United States. The bank suggests that Ethereum's ETF approval process would likely mirror the path taken by Bitcoin in the latter part of the previous year.

Recent Landmark Developments in the Digital Asset Industry

The new year saw a significant development in the digital asset industry, with the SEC greenlighting the creation of 11 Spot Bitcoin ETFs in the United States. This approval has prompted industry participants to ponder on the potential for other digital assets, such as Ethereum, to receive similar regulatory approval.

Ethereum's Potential On The Horizon

According to Standard Chartered Bank, Ethereum may be next in line for this type of approval. Specifically, the bank anticipates that the SEC will approve Spot Ethereum ETFs in May. Geoffrey Kendrick, the head of Standard Chartered Banks foret and digital assets research, states, We expect pending applications or ETH US spot ETFs to be approved on May 23, the final deadline for the first of the ETFs under consideration- the equivalent date to Jan. 10 for BTC ETFs.

Kendrick also suggested that Ethereum could follow a similar upward trajectory as Bitcoin did before its ETF approval. Even though Bitcoin didn't experience a significant surge in value post-approval, the anticipation of approval drove its price up. Consequently, Kendrick forecasts that Ethereum could trade as high as $4,000 by the time of approval.

Why Ethereum Could Get the Green Light

Kendrick is optimistic about approval due to the SEC's past treatment of Ethereum in its legal actions against digital asset firms. Specifically, the SEC has not classified Ethereum as a security. Furthermore, Ethereum is listed as a regulated futures contract on the Chicago Mercantile Exchange, which may increase its chances of approval.

Moreover, Kendrick pointed out that Grayscale is aiming to transform its Ethereum trust into an ETF. He predicts that if this application is denied, Grayscale would likely appeal the decision. Kendrick concluded by stating that he sees no fundamental reason why the SEC and the CME would view Ethereum differently.

Edited by Jonathan Stoker