Standard Chartered expects ether ETF approval this week, reiterates year-end target of $8,000

Standard Chartered expects the U.S. Securities and Exchange Commission to approve ether ETFs this week. 

The first round of spot ether ETF deadlines is fast approaching, with VanEck's on May 23 and Ark Invest/21Shares' on May 24.

Speaking to The Block, Standard Chartered Bank Head of FX Research and Digital Assets Research Geoff Kendrick said he is "80% to 90%" sure that ether ETFs will be approved this week.

"After approval, we estimate that spot ETFs will drive inflows of 2.39-9.15 million ether in the first 12 months after approval," Kendrick said, adding: "In U.S. dollar terms, that equates to roughly $15 billion to $45 billion."

"As a percentage of market cap, it is similar to our estimates of inflows to bitcoin ETFs, which are proving accurate," Kendrick said.

An ether year-end price target of $8,000

In an analysis note sent to The Block on Tuesday, Kendrick added that if spot ether ETFs receive approval this week, ether could keep pace with bitcoin, with the current 5.4% price ratio holding for the rest of 2024.

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"Given that we now see bitcoin reaching the $150,000 level by end-2024, this would imply a level of $8,000 for ether," Kendrick said.

The analyst added that, given Standard Chartered's estimated bitcoin price level of $200,000 by the end of 2025, this would also imply an ether price of $14,000 by the end of 2025. This is a reiteration of the price target the bank gave for ether in March.

SEC requests amended filings

On Monday, the SEC requested updates to 19b-4 filings for spot ether ETFs ahead of this week's deadlines, indicating potential progress toward approval. However, approval is not guaranteed.

Following the SEC's request, Bloomberg ETF analysts James Seyffart and Eric Balchunas stated that the chances  of the SEC approving such a product have increased from 25% to 75%.

Ether's price increased by over 19% in the past 24 hours and was changing hands for $3,719 at 6:49 a.m. ET, according to The Block’s Price Page .

The GM 30 Index , representing a selection of the top 30 cryptocurrencies, increased by 9.25% to 148.75 in the same period.

The price of ether gained over 19% on Tuesday, after the SEC requested exchanges to update their 19b-4 filings. Image: The Block.