Spot Ethereum ETFs Could Be Approved As Early As May 23

Key Points:

• Standard Chartered predicts SEC approval for spot Ethereum ETFs by May 23, following a pattern of initial rejections.
• Based on Ethereum’s regulatory status, non-classification as a security, and CME listing, ETH prices could surge to $4,000 upon approval.

In a strategic move mirroring its approach to approving Bitcoin exchange-traded funds (ETFs), the Securities and Exchange Commission (SEC) is anticipated to follow a pattern of initial rejections and eventual approvals for spot Ethereum ETFs, according to Standard Chartered Bank, The Block reported.

SEC Anticipated to Greenlight Spot Ethereum ETFs Following Standard Chartered’s Strategic Analysis

Geoffrey Kendrick, head of forex and digital assets research at Standard Chartered, suggests that pending applications for spot Ethereum ETFs will likely be approved by the final deadline on May 23. This timeline aligns with the precedent set for BTC ETFs on January 10.

Kendrick argues that if Ethereum’s price trajectory mimics that of Bitcoin in the lead-up to ETF approval, ETH could surge to $4,000 by the specified date. The expectation for Ethereum ETF approvals is anchored in the SEC’s non-classification of ether as a security in legal actions against crypto firms, coupled with ETH’s listing as a regulated futures contract on the Chicago Mercantile Exchange.

Highlighting Grayscale’s ETH trust aiming for ETF conversion, Kendrick emphasizes that a denial might prompt an appeal. He underscores the absence of a fundamental reason for the SEC to differentiate its view of ETH from that of the CME.

Meanwhile, the SEC extended its decision deadline on BlackRock’s proposed Ethereum ETF a day before the initial cutoff, citing the necessity for further review. The SEC also delayed a verdict on Grayscale Investments’ spot Ethereum ETF, opening the application to public comments and extending the decision timeline by an additional 35 days.

While the final call on BlackRock’s ETF is slated for August 7, Bloomberg ETF analyst Eric Balchunas predicts a consolidated decision on all pending Ethereum ETFs by May, aligning with the SEC’s swift resolutions for Bitcoin ETFs in January.