- Ether (ETH) could surge to $4,000 if the SEC approves spot ETFs in May, according to a Standard Chartered Bank report.
- The report predicts the SEC will likely approve the first spot ether ETFs on May 23, similar to how it approved bitcoin ETFs.
- Ether may outperform bitcoin ahead of approvals, like bitcoin did last summer surging 85% before its ETFs were approved.
Ether (ETH), the second-largest cryptocurrency, could surge nearly 70% and reach $4,000 if the U.S. Securities and Exchange Commission (SEC) approves spot exchange-traded funds (ETFs) in May. That’s according to a new report from Standard Chartered Bank.
SEC Likely to Approve Ether ETFs in May
Research head Geoff Kendrick and analysts at the British bank expect the SEC to greenlight the first spot ether ETFs on May 23 – the deadline for final decisions on applications by VanEck and Ark 21Shares.
The SEC will likely treat ether similarly to bitcoin and approve the ETFs after initially delaying decisions, just as it did with bitcoin ETFs, the report states. Currently, the market underestimates the odds of approval.
Key reasons the bank sees no fundamental barrier:
- Ether futures already trade on the regulated Chicago Mercantile Exchange
- SEC did not deem ether a security in its fight against Ripple
Ether Price Could Outperform Bitcoin Ahead of Approvals
The report predicts ether will mirror or outperform bitcoin’s price action in the months leading up to the expected ETF approvals.
When bitcoin ETF hopes were high last summer, bitcoin surged 85% – from $25,000 in mid-June to $47,000 in January right before approvals.
Ether would also likely face less selling pressure than bitcoin did post-approval. That’s because the Grayscale Ethereum Trust’s share of ether’s market cap is smaller than Grayscale Bitcoin Trust’s share of bitcoin’s market cap.
First Ether ETFs Will Track Spot Price
The report concludes the first SEC-approved ether ETFs will likely track the spot price rather than include staking rewards.
