Green Light For Ethereum! SEC Eyes May 23rd For Spot ETF Approval Could Send ETH Soaring

Hold onto your crypto wallets, Ethereum fans! Standard Chartered Bank just dropped a news. They anticipate a green light for spot Ethereum ETFs in May 2024, setting the stage for a potential 70% price surge and a $4,000 ETH by May. But before getting into the details let’s understand some basics.

What does ETF mean for Crypto?

A bitcoin futures exchange-traded fund (ETF) issues publicly traded securities that offer exposure to the price movements of bitcoin futures contracts. Here’s how it works: An investment company creates a subsidiary that acts as a commodity pool.

What Is Ethereum ETF?

An Ethereum ETF is a financial product designed to track the price of Ethereum, enabling investors to buy and sell shares on traditional stock exchanges.

Why May?

Standard Chartered’s research team, led by analyst Geoff Kendrick, sees a familiar pattern emerging. They believe the U.S. Securities and Exchange Commission (SEC) will follow its playbook from the Bitcoin ETF approval process: initially rejecting applications, then finally giving the thumbs-up. May 23rd is the tentative date for this delayed approval, mirroring the January 10th date for Bitcoin ETFs.

Bullish Outlook: A Bitcoin-like Boom?

If history rhymes, Ethereum could follow Bitcoin’s path to glory. Kendrick notes, “If ETH prices perform similarly to BTC prices in the lead-up to BTC ETF approval, ETH could trade as high as $4,000 by then.” This echoes Bitcoin’s impressive 85% surge after its ETF approval.

Also Read- Bitcoin ETF: The Hype Explained And What It Means For You?

But Wait, Are There Doubters?

Not everyone shares Standard Chartered’s optimism. TD Cowen’s Washington Research Group throws cold water on the May 23rd theory, suggesting political pressure on SEC Chair Gary Gensler might delay approval until 2025–2026. They believe the upcoming US elections in November 2024 could make Gensler cautious.

Reasons for ETH Optimism:

Despite the differing viewpoints, Standard Chartered remains bullish on Ethereum. They predict ETH could even outperform Bitcoin in the run-up to approval, due to factors like:

1. Less selling pressure: Grayscale Ethereum Fund (ETHE) has a smaller market share than Grayscale Bitcoin Fund (GBTC), potentially leading to less post-approval selling pressure on ETH.
2. FTX bankruptcy impact: Fewer ETHE shares are held by the FTX bankruptcy estate, further reducing potential selling pressure.

The Bottom Line:

While the exact timing of Ethereum’s ETF approval remains a mystery, the market seems confident it’s coming, sooner or later. So, buckle up, Ethereum fans — we could be in for a wild ride!

Remember: This is just one perspective on the Ethereum ETF approval. It’s important to research and consider all viewpoints before making investment decisions.

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