Standard Chartered Bank Forecasts Up to $45 Billion Inflows with Spot Ethereum ETF Approval

The Block reported about statements from Geoffrey Kendrick, the head of forex and crypto research at Standard Chartered Bank, who believes that ETFs for Ethereum could still gain approval on May 23, though this viewpoint is not widely shared. Kendrick's optimism is grounded in the Securities and Exchange Commission's non-classification of ETH as a security, along with recent developments such as the London Stock Exchange's acceptance of applications for exchange-traded notes backed by BTC and ETH.

While Kendrick acknowledges that many experts disagree with the likelihood of Ethereum ETF approval on May 23, he remains confident. Bloomberg's senior ETF Analyst, Eric Balchunas, has lowered his expectations of approval to 30%, down from 70% in January, and the Polymarket predictions platform has also adjusted its expectations accordingly.

Despite the skepticism, Kendrick anticipates significant inflows into Ethereum if ETFs are approved, similar to the pattern observed with Bitcoin ETFs. He estimates that ETFs could drive inflows of 2.39-9.15 million ETH in the first 12 months post-approval, equating to approximately $15 billion to $45 billion.

Moreover, Kendrick suggests that approval of Ethereum ETFs could accelerate ETH's price growth, potentially reaching $8,000 by the end of 2024 and $14,000 by the end of 2025. He attributes this forecast to Ethereum's anticipated mirroring of Bitcoin's price trajectory.

Additionally, Kendrick highlights Ethereum's recent DenCun upgrade, which reduces transaction fees on Layer 2 networks, making Ethereum more competitive. He anticipates increased significance of the "bridge" category and foresees Ethereum's evolution towards gaming and tokenization, further driving demand via NFT and DeFi channels.

Resources:

The Block