Standard Chartered, a major financial institution with over $800 billion in assets under management, has announced its expectation that the United States Securities and Exchange Commission (SEC) will approve spot Ether exchange-traded funds (ETFs) by May 24. The upcoming deadlines for spot Ether ETFs are quickly approaching, with the final deadline for the VanEck ETF filing on May 23 and the ARK Invest and 21Shares deadline on May 24.
Interestingly, Standard Chartered has changed its stance on the likelihood of a spot Ether ETF approval just one month after stating that it was unlikely to happen by May. Geoff Kendrick, the head of FX and digital assets research at Standard Chartered, now believes that there is an “80% to 90%” certainty that the SEC will approve spot Ether ETFs later this week.
Kendrick anticipates significant market inflows into spot Ether ETFs in their first year, estimating that between 2.39 and 9.15 million Ether, equivalent to approximately $15 billion to $45 billion, could be invested. These estimates are similar to those for spot Bitcoin ETFs. Kendrick also predicts that Ether will experience similar growth to Bitcoin, potentially reaching around $8,000 by the end of this cycle based on Bitcoin price predictions of $150,000.
The SEC’s recent request for exchanges to update their 19b-4 filings before the May deadline has prompted many market experts who were previously certain that Ether ETF applications would be rejected to change their stance. Bloomberg ETF analyst Eric Balchunas, who had previously lowered the chance of approval to 25%, has now increased it to 75% leading up to the final deadline. Fidelity has already filed an amended proposal after the SEC’s request, clarifying that the Ether under its management in the ETF will not be staked.
Amid the increasing likelihood of the SEC approving a spot Ether ETF, the price of the second-largest cryptocurrency has risen by double digits, reaching a new multiweek high of over $3,800.