British multinational bank Standard Chartered has made fresh predictions regarding the U.S. SEC’s potential approval of Ethereum spot ETF.
In a recent report shared by Bloomberg, Standard Chartered predicted that the U.S. SEC would approve an Ethereum spot ETF launch in May 2024. The financial institution highlighted May 23 as the tentative date for the SEC’s approval of Ethereum spot ETFs.
It bears mentioning that May 23 is the final deadline by which the commission must approve or deny Ethereum spot ETF applications from Ark Invest and 21Shares, and VanEck.
Notably, Standard Chartered expects the securities regulator to approve the Ethereum ETF on the final deadline the same way it did on January 10, when multiple Bitcoin spot ETFs were approved at once.
Key Similarities Between ETH and BTC
Commenting, Geoff Kendrick, the head of the Standard Chartered FX Research unit, drew parallels between Bitcoin and Ethereum trajectories. He pointed out that since both crypto assets have similar legal and financial status, they will likely follow the same ETF approval pattern.
Notably, the SEC has excluded Bitcoin and Ethereum from the list of crypto assets it considers to be securities. Like Bitcoin, Ethereum also has a future-based ETF traded on the Chicago Mercantile Exchange (CME). These funds were approved by the SEC.
As a result, the report suggests that the SEC will approve the launch of Ethereum spot ETFs since Bitcoin now has its own spot-based fund.
ETH to Surge to $4K in May
Recall that Bitcoin surged to around $47,000 days before the SEC finally approved the multiple BTC spot ETFs. The top asset rallied to $48,500 a few hours after the approval.
Notably, Kendrick speculated that if ETH follows the same pattern as BTC, it could rise to $4,000 by the projected May 23, 2024 approval date.
In the meantime, ETH is changing hands at $2,307, 0.3% over the past 24 hours.
Aside from Standard Chartered, Bloomberg ETF analyst Eric Balchunas expects the SEC to approve at least one of the multiple Ethereum spot ETF applications by May 2024.
Some asset managers seeking the SEC’s approval to launch Ethereum spot ETFs include BlackRock, Fidelity, VanEck, Grayscale, and Ark Invest.
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