It has been less than 30 days since the US Securities and Exchange Commission gave the green light to Bitcoin ETF applications. Now, another crypto ETF is on the horizon.
A Standard Chartered Bank representative said there is a high possibility for the Commission to approve the first batch of Spot Ethereum ETF applications. They have added that the pattern will be more or less the same, wherein the SEC first rejects applications and then approves them when they meet requirements.
Geoffrey Kendrick, the Head of Forex and Digital Assets at Standard Chartered Bank, has also said that the value of ETH may hit the $4,000 mark around the time when its ETF applications are expected to be approved.
While it is unclear if the SEC will actually approve applications on May 23, 2024, and if prices will react similarly to the way they did for BTC, it is sure that the token has already started demonstrating the impact. Ethereum is up by 0.85% in the last 24 hours, being traded at $2,325.08. Moreover, it is a jump of 3.86% in the last 7 days and 0.81% in the last 30 days.
Assuming Kendrick’s speculation turns out to be true, ETH could indeed experience a spike in its trading value.
His statements are based on two crucial factors:
- Ether has not been categorized as security in the legal actions of the SEC.
- Ethereum is listed as a regulated futures contract on the Chicago Mercantile Exchange.
Not just price movements, but Grayscale’s stand is also expected to turn out the same way it did for Bitcoin ETF. Grayscale has an ETH trust that the platform is looking to convert to an ETF. The only exception is the outflow. Grayscale has a smaller share of ETH in its respective funds than BTC. The outflow from GBTC led to a massive downplay in Bitcoin’s value. It further affected cryptos like Ethereum, for the sentiments prevailing at the time went on to be bearish.
Bitcoin is currently trading at $42,817.36; this is a drop of 1.37% in the last 24 hours. However, it reflects a rise of 7.08% in the last 7 days and 0.10% in the last 30 days. Bitcoin is poised to reach its ATH by the end of this year. Many speculate that Bitcoin Halving could push the value of the token to more than its ATH, even surpassing the milestone of $100,000 and setting the track for $220,000.
Kendrick has always been optimistic about the cryptosphere. He had earlier expressed bullish thoughts for the Bitcoin ETF, saying that inflows could reach $50-$100 billion in 2024. In terms of valuation, Kendrick said that it could rise to $100,000 and $200,000 by the end of 2024 and 2025, respectively.