According to a research note from Standard Chartered, a British multinational bank, Ethereum (ETH) is expected to outperform Bitcoin (BTC) once spot exchange-traded funds (ETFs) for Ethereum are approved by regulators in May of this year. The bank expressed a particularly bullish outlook on both assets, revising its previous Bitcoin cycle top prediction from $150,000 to $250,000 by 2025.

Standard Chartered believes that Ethereum’s price could surge upwards of 4 times its current value to reach $14,000 per unit. This significant increase is anticipated to be driven by a 12-month wave of ETF inflows, potentially amounting to $45 billion.

The bank’s positive stance on Ethereum is likely attributed to the growing interest and adoption of decentralized finance (DeFi) applications and the Ethereum blockchain’s role as a foundation for various digital assets and smart contracts. The potential approval of Ethereum-based ETFs by regulators could further boost Ethereum’s investment appeal and attract significant capital inflows.

It’s important to note that these predictions and projections are based on the assumptions of ETF approvals and corresponding capital inflows, which are subject to regulatory decisions and market dynamics. The cryptocurrency market is highly volatile and can be influenced by various factors, including regulatory actions, investor sentiment, and technological developments. Therefore, it’s crucial for investors to exercise caution and conduct their own research before making any investment decisions.

Standard Chartered Predicts Ethereum (ETH) to Reach $14,000 Price Point

According to Standard Chartered analyst Geoff Kendrick, the bank estimates that spot exchange-traded funds (ETFs) for Ethereum (ETH) could drive inflows of 2.39-9.15 million ETH in the first year after approval, equivalent to approximately $15 billion to $45 billion in USD terms. These figures align with the bank’s expectations for Bitcoin spot ETFs in terms of market cap-adjusted inflows.

Since the launch of U.S. Bitcoin spot ETFs in January, they have experienced significant net inflows totaling over $11.9 billion, despite outflows from the Grayscale Bitcoin Trust (GBTC).

Based on the current trajectory, Standard Chartered has revised its end-of-2024 Bitcoin price prediction from $100,000 to $150,000. The bank considers $200,000 as the “new midpoint for a sideways trading range” by the end of 2025. This aligns with a scenario where Bitcoin occupies 20% of investors’ allocation to gold within their portfolios, referred to as a “two-asset optimization scenario.”

In terms of Ethereum, the bank expects it to either keep pace with or potentially outpace Bitcoin over the next two years. The projected price ratio for Ethereum against Bitcoin is forecasted to increase from its current 5.4% in 2024 to 7% in 2025, which is consistent with the ratio observed in 2021 and 2022. Standard Chartered predicts an end-of-2024 price of $8,000 for Ethereum and an end-of-2025 price of $14,000, based on its BTC expectation of $200,000.

It’s important to note that these are forecasts and predictions made by Standard Chartered analysts, and they are subject to various market factors and uncertainties. The cryptocurrency market is known for its volatility and can be influenced by regulatory developments, investor sentiment, and technological advancements. Investors should exercise caution and conduct their own research before making any investment decisions.

The Approval of an Ethereum ETF: Prospects and Considerations

It appears that some analysts, including Bloomberg ETF analyst Eric Balchunas, have become less optimistic about the approval of Ethereum (ETH) ETFs by May, citing a lack of communication from regulators. Balchunas mentioned that the odds of ETH ETF approval by the May deadline have decreased to 35%.

The approval of ETFs for cryptocurrencies involves regulatory processes and considerations, which can be complex and time-consuming. While there has been growing interest in launching ETFs for digital assets like Bitcoin, the approval process has faced delays and uncertainties in the past.

It’s worth noting that the regulatory landscape and attitudes toward crypto ETFs can vary across jurisdictions. Different regulatory bodies have their own criteria and requirements for evaluating and approving such investment products. This can contribute to the uncertainty surrounding the approval timeline for ETFs specifically focused on Ethereum.

Given the evolving nature of the regulatory environment and the lack of clear signals or communication from regulators, analysts like Balchunas may have adjusted their expectations regarding the approval timeline for Ethereum ETFs. It’s important to monitor regulatory developments and official statements from relevant authorities to gain insights into the prospects of ETF approval for Ethereum and other cryptocurrencies.

By admin

Leave a Reply

Your email address will not be published. Required fields are marked *