The potential Ethereum spot ETF approval on May 23rd would lead to a surge in ETH price says Standard Chartered. Just like the approval of Spot Bitcoin ETF on January 11, Ethereum spot ETF will likely witness rejection after its approval.
According to Geof Kendrick, Standard Chartered head of forex and digital asset research, ETH is expected to surge by 70% to hit $4,000 by the end of the year if the ETH ETF is approved by the SEC. However, Geof is positive that the Ethereum spot ETF will be approved since May 23 sets the approval and deadlines for applications by institutions’ asset managers like Ark/21 shares and VanEck.
According to the report released by Geof Kendrick on Tuesday, May 23 is the day the Security and Exchange Commission will either deny or approve the spot Ethereum ETF from Ark 21shares and VanEch. On the other side of the coin, Ethereum ETF approval is not as it seems. In the previous week, the SEC delayed the application of Spot Ethereum ETF from Grayscale and Blackrock. However, the analyst predicts that Ether Spot ETF approval closely reflects that of the Bitcoin ETF pattern.
ETH to Surge to $4,000 if ETF is Approved
The analyst believes that the price of Ether will surge to $4,000 before the approval date if the asset follows the Bitcoin ETF pattern. Bitcoin surged 85% from $25,000 to $48,000 before the approval of the Bitcoin ETF on January 11th. The analyst predicts that Ether might also surge by 70% before May 23rd. Moreover, the analyst predicts that Ethereum, unlike Bitcoin, will not see a decline in price after Ethereum ETF approval.
However, Bitcoin ETF approval brought selling pressure to the market, declining the price from $47,000 to $38,000. Bitcoin selling pressure was due to the Grayscale bitcoin outflow, but the analyst noted that Grayscale does not have much market capitalization compared to that of Bitcoin to affect the price of Ether. Moreover, the surge in Ethereum is anticipated by several market assumptions: sentiments of approval being low, the SEC approving multiple assets, and implied volatility being wrong. As of the writing time, the price of Ethereum was at $2,338—an increase of 1.12% over the past 24 hours.