Ethereum (ETH), the second-largest crypto asset (virtual currency) by market capitalization, is likely to receive regulatory approval in the United States as its application for a spot-based exchange-traded fund (ETF) is likely to receive regulatory approval in the United States. It has risen nearly 70% since then, and could reach $4,000 (approximately 600,000 yen, at an exchange rate of 150 yen to the dollar) by May. Standard Chartered Bank pointed this out in a report on the 30th.
Approved and expected on May 23rd
Analysts at Standard Chartered, led by head of research Geoff Kendrick, believe that the U.S. Securities and Exchange Commission (SEC) may delay decisions on physical ETF applications, as they did with Bitcoin, and that the final We expect that approval will be issued within the first final deadline. As a result, the provisional approval date will be May 23, which is the final deadline for applications from asset management companies VanEck and Ark 21Shares.
Although the market currently underestimates the probability of approval, Standard Chartered believes there is “no fundamental reason” for the SEC to treat Ethereum differently than Bitcoin, according to the report. Ethereum futures are also listed on the regulated Chicago Mercantile Exchange (CME), and the SEC has listed Ethereum as one of the 67 types of crypto assets it claims are securities in its legal battle with Ripple. We emphasized the points that were not included.
Performance equal to or better than Bitcoin
Kendrick and his team wrote: “We expect Ethereum price to match or outperform Bitcoin (BTC) price over a similar period heading into May 23, when approval is expected.” he pointed out.
Bitcoin has fallen from around $25,000 in mid-June last year, when BlackRock, the world’s largest asset management company, applied for an ETF, to around $47,000 when a spot ETF was approved on January 10 of this year. The dollar soared 85%.
The report also notes that the Grayscale Ethereum Fund (ETHE) has a smaller market share of Ethereum market capitalization than the Grayscale Bitcoin Fund (GBTC), and the FTX Bankruptcy Foundation owns fewer units, making it an ETF. He said that Ethereum is exposed to less selling pressure than Bitcoin after approval.
Bitcoin has fallen from a high of $49,000 on January 11, when the Bitcoin ETF began trading, to $38,500 last week. Market participants have pointed out that about $5 billion has been outflowed from GBTC’s fire sale since its conversion into an ETF.
The report also noted that the first type of Ethereum ETF to be approved in the United States would likely be one that tracks the spot Ethereum price and would not include staking rewards.
｜Translation and editing: Rinan Hayashi
｜Original text: Ether Could Hit $4,000 With Likely Spot ETH ETF Approval in May: Standard Chartered