Standard Chartered is optimistic that the Ethereum price will soar to $4,000 following the potential approval of its associated spot ETF by the US Securities and Exchange Commission (SEC).
The British multinational banking giant is anticipating the approval of the spot Ethereum ETF by May according to a Bloomberg report.
Many companies have indicated their interest in issuing spot Ethereum ETFs. Nonetheless, while there are futures-based ETF equivalent trading in the market at the moment, the skepticism for this product is profound.
The approval of spot Bitcoin ETF earlier in January has positioned the minds of many stakeholders that the markets regulator will not want to backtrack on the precedent it set. Standard Chartered falls into this category.
Standard Chartered Assumptions Challenged
Standard Chartered might be optimistic about the prospects of a spot Ethereum ETF, but it is worth noting that more solid arguments about that posit otherwise.
Market veterans like Scott Johnsson believe past precedents on crypto ETFs might play little to no role in projecting the SEC’s stance over Ethereum.
The dissensions surrounding the status of the asset as either a security or commodity also lend complication to the broader conversation.
In Johnsson’s argument, he believes the regulator may want to see market consistency that might span over 2.5 years.
For the better part of the past decade, Bitcoin ETF issuers had been lobbying the SEC for approval, and not until a court ruling in Grayscale’s favor came last year that the commission had to rethink its stance.
Popular crypto advocate and SEC Commission Hester Peirce has admitted that the regulator has learned from its mistakes and will approach the Ethereum ETF applications differently. The final deadline for the VanEck and Ark 21Shares ETH ETF filing is slated for May 23.
Will Price Roar as Expected?
Considering that Ethereum’s price and market capitalization are down by 0.23% to $2,309.90 and $277,418,766,113, the $4,000 projection from Standard Chartered is quite ambitious.
Many analysts projected a parabolic boom for Bitcoin should its association ETF be approved by the SEC. Surprisingly, the reverse has been the case with the digital currency just recuperating from the downtime the approval brought with it.
While breaching the $4,000 benchmark is not uncommon for Ethereum considering its All-Time High (ATH) price of $4,891.70, the Standard Chartered timeline might require some time concessions as events unfold.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
