- SEC approval of Ethereum ETFs could be the catalyst, expecting approval in May.
- Large fund managers such as BlackRock and Fidelity have applied to the SEC to launch Ethereum-based ETFs.
Ethereum (ETH) stands on the brink of potentially monumental growth, according to insights from Standard Chartered. With an ambitious projection, the bank’s analysts forecast that Ethereum could soar to $8,000 by the end of this year and astonishingly hit $14,000 by 2025.
At the heart of this optimism lies the anticipation of regulatory green lights for spot Ethereum exchange-traded funds (ETFs), earmarked as a pivotal moment for the digital currency.
“If ETF inflows reach our mid-point estimate of $75billlion, and/or if reserve managers buy BTC, we see a good chance of an overshoot to the $250,000 level at some stage in 2025.”
Geoffrey Kendrick, leading the charge on forex and crypto research at Standard Chartered, emphasises the dual catalysts primed to fuel Ethereum’s ascent. “Ethereum is navigating through a significant period, having recently implemented a major upgrade with another milestone, the U.S. approval of ETH ETFs, anticipated in May,” Kendrick states. This blend of technological advancement and regulatory progression sets a fertile stage for Ethereum’s price trajectory.
“We think the gold analogy – in terms of both ETF impact and the optimal portfolio mix – remains a good starting point for estimating the ‘correct’ BTC price level medium-term,” the note said.
The recent ‘Dencun’ upgrade, a technical enhancement aimed at reducing transaction fees on the blockchain, represents another cornerstone in Ethereum’s path to greater utility and valuation. This improvement dovetails with bullish sentiments echoed across the financial landscape, including a January prediction by JPMorgan, positing that ETH could reach $5,000 by year-end.
The push for Ethereum ETFs by financial giants such as BlackRock and Fidelity underscores the growing institutional interest in Ethereum. Standard Chartered’s analysts are betting on a favourable nod from the Securities and Exchange Commission (SEC) by the summer, setting the stage for a watershed moment in Ethereum’s journey.
The ETF Effect: A Game Changer for Ethereum
The potential approval of an Ethereum ETF by May 23 is more than just another regulatory tick box. According to Standard Chartered, such a development could unlock up to $45 billion in new capital inflows into Ethereum within its first year.
This influx, coupled with an increasing attraction to Ethereum’s technological offerings and its vibrant ecosystem, could catapult the cryptocurrency’s price to around $8,000 by the end of 2024, a significant leap from its current trading price of approximately $3,570.
Looking further ahead, Standard Chartered envisions a rekindling of the ETH-BTC price ratio seen in 2021-2022, achieving a 7% level. Given the bank’s projection of Bitcoin reaching $200,000 by the end of 2025, this ratio would translate Ethereum’s value to a staggering $14,000.
