Ethereum Price Could Hit $8,000 with ETF Approval: Standard Chartered
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Standard Chartered has made a bold prediction regarding the approval of Spot Ethereum ETFs, stating that massive inflows to the market could raise the price of Ethereum.
According to Geoff Kendrick, Head of FX Research and Digital Assets Research at Standard Chartered, the U.S. Securities and Exchange Commission will more than likely pass Ether ETFs this week, which could lead to billions in market inflows and huge increases in Ethereum’s price.
Bullish Outlook on Ethereum ETFs From Standard Chartered
Geoff Kendrick sounds very confident about the passing of the Spot Ethereum ETF. He places the odds at an 80% to 90% chance. He told The Block, “We think approval is likely: VanEck’s and Ark Invest/21Shares’ applications are due for a decision by the SEC by 23 and 24 May, respectively.”
Kendrick estimated, “After approval, we estimate that spot ETFs will drive inflows of 2.39-9.15 million ether in the first 12 months after approval,” translating to approximately $15 billion to $45 billion in U.S. dollar terms.
The approval of the Spot Ethereum ETF could mirror what happened to Bitcoin ETFs. Kendrick noted that the percentage increase of inflows against the market cap for Ethereum ETFs would be similar to that of Bitcoin ETFs, which have proven accurate with previous estimates.
He stated that Ethereum could keep up with Bitcoin as he projected a year-end price target for ETH at $8,000 if Bitcoin reaches $150,000 by the end of 2024. Looking further ahead, Kendrick reiterated the bank’s earlier price target of $14,000 for ETH by the end of 2025, aligning with a Bitcoin price target of $200,000.
Market Reactions and Analyst Insights
The anticipation of Ethereum ETF approval has already influenced the market. The price of Ether shot over 19% in the last 24 hours, up to $3,719.
Crypto analyst Miles Deutscher also expressed a similar optimism: the crypto might rally to $6,446 by July 23 if ETH follows the same path as Bitcoin post-ETF approval.
“BTC rallied 75% in 63 days after the spot ETF was approved. If ETH follows the same trend, this would take it to $6,446 by July 23,” Deutscher noted.
What’s more, the futures open interest for Ethereum has reached an all-time high, increasing by 35.12% to $15.60 billion, showing that derivatives traders are showing more interest. This surge in open interest underscores the heightened anticipation and bullish sentiment surrounding Ethereum.
Progress and Challenges in Regulation
The SEC’s recent request for exchanges to update their 19b-4 filings for spot ether ETFs ahead of this week’s deadlines suggests potential movement toward approval.
Following this development, Bloomberg ETF analysts James Seyffart and Eric Balchunas have raised their approval odds from 25% to 75%. While the signs are promising, it’s far from certain that approval will be achieved, and the SEC may take more time to approve the necessary S-1 registration statements.
