SEC Likely to Approve Spot Ether ETF This Week: Standard Chartered

Standard Chartered, a significant player in the financial sector with assets surpassing $800 billion, has predicted that the U.S. Securities and Exchange Commission (SEC) will approve spot Ether exchange-traded funds (ETFs) later this week. This shift in outlook comes as essential deadlines for the approval of spot Ether (ETH) ETFs are nearing. Specifically, the final deadline for the VanEck ETF filing is set for May 23, closely followed by the ARK Invest/21Shares’ deadline on May 24.

This optimistic perspective from Standard Chartered is notable, given that just a month ago, the financial institution expressed skepticism about the likelihood of the SEC granting approval by the May deadline. Geoff Kendrick, who heads the FX and digital assets research at Standard Chartered, shared that the firm is now “80% to 90%” confident that the SEC will greenlight the Ether ETFs later this week.

Kendrick also discussed potential market impacts, suggesting significant inflows into the spot ETH ETF. He estimated these inflows could range from 2.39 million to 9.15 million Ether in the first year of approval, which translates to a value of approximately $15 billion to $45 billion. These figures echo their projections for spot Bitcoin ETFs. Kendrick forecasted that based on the expected influence of ETF inflows on Bitcoin prices—with some predicting Bitcoin could hit $150,000—Ether’s value could similarly ascend, potentially reaching about $8,000 by the end of the current cycle.

The SEC’s recent actions have fueled this renewed optimism. The commission unexpectedly instructed candidates for Ether ETFs to revise their 19b-4 applications ahead of this week’s deadline. This intervention has markedly altered the perspective of market analysts, many of whom were previously convinced that Ether ETF applications would face rejection.

Eric Balchunas, an ETF analyst at Bloomberg, has revised his own predictions in light of this development. Having initially estimated a 25% chance of the SEC approving the Ether ETFs, Balchunas has since adjusted this likelihood to 75% as the final deadline approaches.

In response to the SEC’s recent instructions, Fidelity has already submitted an updated proposal. Notably, Fidelity’s amendment clarifies that the Ether managed for their ETF will not be staked, a move likely aimed at addressing regulatory concerns.

As the market speculates on the potential approval, the anticipation has positively impacted Ether’s market performance. The second-largest cryptocurrency saw a notable increase, climbing by double digits to reach a multi-week high of over $3,800.

The evolving sentiment among financial analysts and market participants reflects a broader trend of increasing acceptance and integration of cryptocurrencies into traditional financial instruments. Should the SEC approve the spot Ether ETFs, it would mark a significant milestone for the digital assets market, opening new avenues for institutional investment.

The impending SEC decision on spot Ether ETFs has generated considerable buzz within financial circles. With key deadlines just days away, Standard Chartered and other analysts are increasingly optimistic about a favorable outcome. This development could potentially propel Ether to new heights and further solidify its position in the cryptocurrency market.